Thailand's Precious Shipping has fixed a new $38.35m loan to refinance supramaxes and handysize bulkers.
The shipowner said the five-year deal had been done with Credit Agricole Corporate and Investment Bank.
The loan is secured by the 39,000-dwt Vipha Naree (built 2015) and Viyada Naree (built 2016), the 57,000-dwt Daranee Naree and 56,000-dwt Baranee Naree (both built 2012), and the 34,000-dwt Benjamas Naree (built 2012) and Ananya Naree (built 2011).
Precious, in a statement to the Stock Exchange of Thailand, said the cash would be used to reimburse Precious Shipping (Singapore) for intra-group loans owed by the individual subsidiaries that own the vessels.
The loan will be paid back in 20 equal quarterly installments over the five years beginning three calendar months after the drawdown date together with a balloon payable on final maturity of the loan.
Precious, which has been listed on the Stock Exchange of Thailand since 1993, has 36 modern vessels up to ultramax size.
Managing director Khalid Hashim said: "It is indeed a real pleasure that we have signed this loan agreement with Credit Agricole CIB, who were the very first lender to have ever given us a ship-mortgage backed loan way back in 1988."
Kenneth Lam, managing director and head of shipping and offshore for Credit Agricole CIB in Asia, said the shipowner had time and again demonstrated its resilience to shipping cycles.
Commitment continued
"This transaction reaffirms our long-term commitment to supporting the company’s continued growth," he added.
Precious said in May that the recovery in the dry bulk market is the "real deal" and that shipowners in the sector should expect a strong market in 2021 and beyond.
The Bangkok-based owner added that a combination of historically low fleet growth and massive global stimulus should translate into “multi-year strong tonne-mile demand growth”.
The company booked a first-quarter profit of $12.3m versus a loss of $3.7m a year ago.
Precious reported average earnings per ship during the quarter of $12,157 per day — the highest level the company has seen in a first quarter in a decade.
