SCI secures $260m loan to expand fleet
Shipping Corp of India has signed a 10-year loan for $260m to buy new vessels, according to press reports.
Mandated lead arranger and sole bookrunner for the loan is the State Bank of India, holding $200m of the loan with $60m sold down, according to Reuters.
Lead arrangers are Standard Chartered Bank at $20m, Bank of Nova Scotia at $16m, DNB Nor Bank at $14m and DBS Bank at $7m. Taiwan"s Mega International and Commercial Bank will be arranger at $3m, the news agency said.
The facility is made up of $75m six-year amortising term loan with average life of 3.1 years and a $185m portion 10.5-year amortising loan with an average life of 6.4 years.
The report did not specify what type of vessels would be purchased.
In March, Lloyd"s List reported that the company was continuing to modernise its fleet by disposing of older tonnage and taking delivery of newbuilding product tankers. The plan was to spend up to $2bn in the next two years on new tonnage to take advantage of lower prices.
The company has a mixed fleet of dry bulk and tankers and a small number of containerships.
SCI reported a sharp drop in net profit in the final three quarters of 2009, while its operating result was in the red in the final three months of the year.
Revenue declined by 25% from a year earlier, which resulted in net profit in the final quarter of 2009 more than halving compared with the same quarter in 2008 and a drop of two thirds during the first nine months of its current financial year from April 2009.