INVITATION TO ACT AS ARRANGER/PROVIDER TO RAISE FOREIGN CURRENCY FINANCING FOR ACQUISITION OF SHIPPING VESSELS BY WHOLLY OWNED SUBSIDIARIES OF PAKISTAN NATIONAL SHIPPING CORPORATION

Pakistan National Shipping Corporation (PNSC) solicit interest from Banks and other recognized financial institution to act as Arranger to raise foreign currency long term debt (Facility) to finance acquisition of shipping vessels by wholly owned subsidiaries of PNSC. 

Company Profile

PNSC, the sole national shipping carrier, is a listed public limited company established under the provisions of Pakistan National Shipping Corporation Ordinance, 1979. PNSC owns 15 vessels; 4 Aframax oil tankers (3 single hull & 1 double hull), 1 bulk Panamax and 10 general-purpose vessels with a total carrying capacity of 644,036 Dead Weight M/Tons.

PNSC is managed by a Board of Directors (BOD), consisting of seven members, constituted by the Government of Pakistan (GOP). Five Directors including the Chairman are nominated by the GOP (the majority shareholder with 89.13%), while Shareholders elect other two Directors. Detailed profile and financial information of PNSC may be seen at our website.

The Transaction

The proposed Facility will be utilized for acquisition of two Aframax oil tankers (double hull) and two general-purpose dry cargo vessels. Key terms of reference are as follows:

Amount

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Up to US$ 150 million

2 Aframax Oil Tankers – approximately US$ 55 million each

2 Dry Cargo vessel – approximately US$ 20 million each

Tenor

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Up to 10 years

Flag

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Dual/Pakistan only

Repayment

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Equal quarterly or semi-annual payments after initial 12 months grace period. 

Pricing

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Relevant LIBOR plus margin

Availability

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12 months from document signing date

Loan to Value

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80% - 90%

Security 

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Mortgage over vessels, Guarantee from PNSC, Charge over receivable. 

Request for Proposal

For the purpose of the transaction, PNSC invites detailed and comprehensive proposals to act as Arrangers for the said Facility.

Qualification criteria for the role of Arranger are noted below:

  • The proposed Arranger must be a recognized financial institution with significant experience and a proven record of successful arrangement of debt financing; and 

  • the proposed Arranger must be adequately capitalized and must be in good financial standing such that it is financially and technically capable of carrying out all activities in the successful close of the proposed Transaction; and 

  • the experience of the Arranger in Shipping Finance highlighting its ability to Arrange the proposed Facility

Interested parties are requested to provide their detailed proposals in accordance with the above criteria latest by 24thMarch 2009. The proposal should also include the following information:

  • A brief but clear description of the proposed structure(s) 

  • Amortization Profile with IRR calculation based on an all-inclusive summary of fees and costs to be paid by PNSC

PNSC reserves the right to accept or reject any proposal or part thereof at its sole discretion without assigning any reason.

Any costs incurred in connection with the preparation and submission of proposals will not be borne by PNSC.

Proposals should be sent to the attention of:

 

Executive Director (Finance)

Pakistan National Shipping Corporation PNSC Building, MT Khan Road Karachi

Tel: 92 21 920 4031 

Fax: 92 21 920 3974 & 92 21 563 6658 

Email: iagboatwala@pnsc.com.pk

 

Should you have any further queries, please do not hesitate to contact us.

 Dated: 04-Mar-2009

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