On December 8, China Merchants Energy Shipping announced that it would provide guarantees for its affiliated joint venture. The announcement shows that the name of the guaranteed party is ORE WUHAN HK LIMITED, which is a wholly-owned single-ship company of the joint venture company VLOC Maritime 05 HK Limited formed by a wholly-owned subsidiary of the company and ICBC Leasing in accordance with a 30% and 70% shareholding ratio. The guarantee amount is 22.91 million US dollars.
In May 2018, the company established a joint venture with ICBC Leasing in proportion to 30% and 70% of the shares. The joint venture's wholly-owned project company signed a long COA agreement with Vale to transport iron ore and built six 325,000 dwt VLOCs on the basis.
The joint venture company has gone through negotiation with the financing party on the financing of the six VLOCs and the guarantee provided by the shareholders of both parties.
According to the guarantee agreement, the amount of ship financing is USD 70.1 million, and the total amount of guarantee is USD 76.37 million, including the total
amount of ship financing and liquidated damages.
China Merchants Energy Shipping, as a 30% shareholder of the joint venture company, undertakes the financing guarantee liability not exceeding US $22.91 million.
As of the date of this announcement, the accumulative balance of external guarantee of CMES and its holding subsidiaries is US $3.109 billion, accounting for 80.32% of the company's audited net assets in the latest period.
Source: Sarah Yu, XINDE MARINE NEWS
The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.
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