22 April 2016
International law firm Watson Farley & Williams (“WFW”) advised CSSC (HK) Shipping Co. Ltd. (“CSSCL”) on a $245 million ten-year club senior secured loan for the construction of six Newcastlemax bulk carriers.
Led by Standard Chartered Bank and Bank of America, who were joined by Société Générale, the facility was provided to CSSCL, the ship owning and leasing arm of China State Shipbuilding Corporation (“CSSC”), which was formed in June 2012.
This transaction is the first international syndicated financing for the CSSC Group, a leading shipbuilder in China controlling a number of the largest shipbuilders in the world and owned by the state-owned Assets Supervision and Administration Commission of the State Council. It has three publicly listed subsidiaries including China CSSC Holdings, CSSC Jiangnan Heavy Industry and GSI listed on the on the Shanghai Stock Exchange, with GSI also listed on the Hong Kong Exchange.
Partner Christoforos Bisbikos led the WFW Hong Kong team, assisted by associate Ryan Tan. This transaction has also been awarded Bank Debt Deal of the Year by the prestigious Marine Money Deals of the Year Awards 2016.
Christoforos commented “We are delighted to have advised CSSC on this successful transaction involving a first time international syndication of a Chinese state entity. The deal shows that business continues and successful and mutually beneficial transactions are there to be done if parties are clear in their strategy and find the right funding. It also further reinforces WFW’s position as a market leader in the maritime sector in China and the wider Asia Pacific region”.