Cosco Shipping Energy Transportation, the energy shipping unit of China Cosco Shipping Group, has signed a loan agreement with China Exim Bank to fund the construction of its tanker newbuildings.
Under the agreement, China Exim Bank will provide a $543.9m loan to Cosco to fund ten tanker newbuildings made up of seven VLCCs and three LR1 tankers.
The vessels are under construction at a number of different yards including Dalian Shipbuilding Industry (DSIC), Dalin Cosco KHI Ship Energineering (DACKS) and CSSC Offshore & Marine Engineering.
The amount of loan covers up to 70% of the total price of the tankers. The loan period is 12 years after the delivery of each vessel.
Cosco said the loan will guarantee the timely delivery of the vessels which will greatly optimize the structure of the company’s tanker fleet.