United Arab Shipping secures $205m loan

29 May 2011

The loan will finance the acquisition of two vessels out of a total nine ordered

Kuwait-based United Arab Shipping Company (UASC) has finalised a $205m term loan facility with Paris-headquartered Societe General Corporate & Investment Banking.

The Korean Export Credit Agency (Ksure) is also involved in the deal, which is based on a French tax structure to finance the acquisition of two A13 vessels. The term loan facility will cover a combination of lease and export credit.

The vessels will each have a capacity of 13,100 twenty-foot equivalent units (TEUs). The two vessels form part of UASC’s total order of nine A13s.

Jorn Hinge, president and chief executive officer of UASC, says the acquisition of the two vessels will help strengthen UASC’s position in the container shipping industry and will significantly improve the company’s cost base.

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