Gener8 secures millions in export credit financing from China and Korea

Gener8 secures millions in export credit financing from China and Korea

Athens: Gener8 Maritime has signed non-binding letters of intent with banks in China and South Korea to provide two new export credit facilities, which together will provide almost $1.4bn in financing.

The new credit lines will be used to finance the owner’s contracts for 21 VLCC newbuildings.

Korea Trade Insurance Corporation has expressed interest in insuring part of the $1.007bn Korean-sourced export credit facility, Gener8 said in a SEC filing. The exact amount under discussion was unspecified.

The Export-Import Bank of Korea is also interested in loaning or guaranteeing up to $353m as part of this credit facility.

The Chinese Export & Credit Insurance Corporation has indicated it would like to provide insurance support as part of Gener8’s Chinese export credit facility, which is worth $397m in total.

“We expect that under the definitive documentation for the Export Credit Facilities, at or around the time of delivery of each of our 21 VLCC buildings, an amount equal to the lower of (i) 65% of the final contract price of such VLCC newbuilding and (ii) 60% of the fair market value of such VLCC newbuilding tested at or around the time of delivery of such VLCC newbuilding will be available to be drawn under the applicable Export Credit Facility,” the SEC filing stated.

Gener8 was formed in February when Georgiopoulos-led General Maritime Corporation and Navig8 Crude Tankers entered into a joint-venture agreement, which will see the company become operator of the world’s largest fleet of VLCCs.

The company recently announced plans for an initial public offering, in which it hopes to raise around $100m.

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.

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