Norton Rose Group advised Export-Import Bank of China and Bank of China on a US$1.2 billion shipping loan to Vale, the world’s largest producer of iron ore. Vale intends to borrow US$1.2 billion from the two Chinese lenders to finance the construction of 12 vessels. The loan agreement was signed 9 September 2010 by all parties in Norton Rose’s Singapore office.
The ships will be used to transport iron ore to China from Brazil. Each ship will be able to carry 400,000 deadweight tonnes of ore. Deliveries are expected between the start of 2011 and the end of 2012. The vessels will be owned by Vale Shipping Singapore Pte Ltd and flagged in Singapore.
Nigel Ward banking partner, Beijing commented;
“Shipping is an important focus of our business. We are delighted to have been instructed on this matter. We are currently seeing increased activity in the shipping sector and this loan agreement is an indication of the potential in the market. Across Asia our shipping teams are currently advising clients on finance, joint ventures, M&A and disputes.”
The Norton Rose Group team was led by banking partner Nigel Ward in Beijing with assistance from senior associate Jonathan Silver (Hong Kong) and associates Sharon Ho, Jonathan Keats, Cui Duan and paralegal Zhen Jin in Beijing.
Machado Meyer Sendacz Opice acted as Brazilian counsel for the banks.
The Beijing office of King & Wood advised on aspects of PRC law.
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