Seaspan secures $6.9 billion funding for 70 newbuilds

Canada-headquartered shipowner and operator Seaspan will use around $1.4 billion to finance 10 LNG dual-fuel vessels of 15,000 TEU capacity each.

PHOTO: Seaspan container vessel, the Cosco Pride. Seaspan Corporation

The $6.9 billion funding, concluded in December, will go towards a total investment of $7.6 billion throughout Seaspan’s massive newbuild program.

The funding comprises loans from export credit agencies (ECAs) and Japanese lease contracts (JOLCOs).

The Export-Import Bank of Korea (KEXIM) is providing credit guarantee insurance as well as direct funding and JOLCO transaction support to Seaspan. Meanwhile, the Korea Trade Insurance Corporation (K-Sure) has also provided ECA funding to the company.

This is Seaspan’s second ECA-JLCO transaction, says Graham Talbot, chief financial officer at Seaspan, and parent company Atlas.

“We enter into newbuild contracts only once a long-term lease is in place with one of our high-quality counterparties, and that we have a clear line of sight to financing the project,” Talbot adds.