Yantai Raffles in USD 150 Million 3-Year Loan from China Development Bank

Demonstrating that Chinese banks are supporting Chinese shipping interests on more than just an as-needed basis, Yantai Raffles Shipyard last week announced the signing of a facility that would be used primarily to retire more costly, existing bank debt and for working capital. The three-year facility will be provided by China Development Bank. Yantai Raffles Chairman Mr. Mai Bo Liang noted that the new deals fulfills strategy goals including establishing and building upon key banking relationships in China and replacing short-term bank lines with committed, longer term, competitively-priced funding arrangements. While specific terms were not disclosed, the general description sounds more like something out of 1H07 than 1H09 and illustrates the importance geography, nationality and relationships will play in the ship finance market going forward.

The transaction follows closely behind a cooperation agreement with one of Yantai Raffles’ largest shareholders, China International Marine Containers (Group) (CIMC), and CDB, in which CDB has provided CIMC with credit facilities up to RMB 6.5 billion, or USD 1 billion. Incidentally, Yantai Raffles has over 4,000 employees.

This is only an excerpt of Yantai Raffles in USD 150 Million 3-Year Loan from China Development Bank

Content is restricted to subscribers. To continue reading please Log-In or view our subscription options.