Safe Bulkers, Inc. Enters Into US $122.4 Million Credit Agreements with Japanese Governmental Financial Institutions to Finance Three Japanese Newbuild Vessels
News Release
Safe Bulkers, Inc.
June 1, 2011
First Financing Arrangement of its kind between a Greece-Based Shipping Company and
Japanese Governmental Financial Institutions
Athens, Greece – May 31, 2011 -- Safe Bulkers, Inc. (the “Company”) (NYSE: SB), an
international provider of marine drybulk transportation services, announced today that it has
entered into three credit agreements with Japanese governmental financial institutions
amounting to US $122.4 million to finance the acquisition of three Japanese Post-Panamax
class newbuild vessels.
The previously-announced vessel acquisitions from Japanese shipyards relate to one vessel
which was delivered in 2010 and two vessels which are expected to be delivered in 2011
and 2012, respectively.
The structure of the financing is in accordance with the Organisation for Economic Cooperation
and Development-approved export credit schemes. The amount is repayable over
twelve years with very competitive financial terms. The credit agreements were concluded
with the Japan Bank for International Cooperation, (the “JBIC”), and Citibank Japan, Ltd
acting as lead arranger.
The JBIC is the international wing of Japan Finance Corporation, a Japanese governmental
financial institution which conducts lending, investment and guarantee operations while
complementing private sector financial institutions, promoting Japanese industry.
Nippon Export and Investment Insurance, the official export credit agency of Japan, insured
almost half of the amount.
Safe Bulkers, Inc. is believed to be the first Greece-based shipping company to enter into
financing arrangements of this kind with Japanese governmental financial institutions. The
transaction expands the Company’s strong relationships with Japanese counterparties, from
shipyards and charterers to Japanese financial institutions.
Polys Hajioannou, Chief Executive Officer and Chairman of the Board of Directors of the
Company, commented: “Over many years we have established extensive relationships with
major Japanese shipyards and charterers. We have ordered 26 newbuild vessels in Japanese
yards, while a large percentage of our fleet is chartered with major Japanese charterers.
These three credit agreements now expand our cooperation with Japanese counterparties to
the financial sector as well. We are proud, after extensive efforts, to become the first
2
Greece-based shipping company to enter into this kind of financing arrangement with
Japanese governmental institutions and a private bank in Japan, demonstrating the depth of
our relations with the Japanese market. Our recently completed equity offering with net
proceeds of approximately US $39.6 million and these three credit agreements amounting to
US $122.4 million, further strengthen our liquidity position. We have an ongoing
newbuilding program and we may pursue further attractive vessel acquisition opportunities,
with new vessel designs currently under development by leading Japanese shipyards,
complying with upcoming regulations and incorporating technology advancements
providing for energy efficiency and environmental protection.’’
Japanese Governmental Financial Institutions
Athens, Greece – May 31, 2011 -- Safe Bulkers, Inc. (the “Company”) (NYSE: SB), an
international provider of marine drybulk transportation services, announced today that it has
entered into three credit agreements with Japanese governmental financial institutions
amounting to US $122.4 million to finance the acquisition of three Japanese Post-Panamax
class newbuild vessels.
The previously-announced vessel acquisitions from Japanese shipyards relate to one vessel
which was delivered in 2010 and two vessels which are expected to be delivered in 2011
and 2012, respectively.
The structure of the financing is in accordance with the Organisation for Economic Cooperation
and Development-approved export credit schemes. The amount is repayable over
twelve years with very competitive financial terms. The credit agreements were concluded
with the Japan Bank for International Cooperation, (the “JBIC”), and Citibank Japan, Ltd
acting as lead arranger.
The JBIC is the international wing of Japan Finance Corporation, a Japanese governmental
financial institution which conducts lending, investment and guarantee operations while
complementing private sector financial institutions, promoting Japanese industry.
Nippon Export and Investment Insurance, the official export credit agency of Japan, insured
almost half of the amount.
Safe Bulkers, Inc. is believed to be the first Greece-based shipping company to enter into
financing arrangements of this kind with Japanese governmental financial institutions. The
transaction expands the Company’s strong relationships with Japanese counterparties, from
shipyards and charterers to Japanese financial institutions.
Polys Hajioannou, Chief Executive Officer and Chairman of the Board of Directors of the
Company, commented: “Over many years we have established extensive relationships with
major Japanese shipyards and charterers. We have ordered 26 newbuild vessels in Japanese
yards, while a large percentage of our fleet is chartered with major Japanese charterers.
These three credit agreements now expand our cooperation with Japanese counterparties to
the financial sector as well. We are proud, after extensive efforts, to become the first
2
Greece-based shipping company to enter into this kind of financing arrangement with
Japanese governmental institutions and a private bank in Japan, demonstrating the depth of
our relations with the Japanese market. Our recently completed equity offering with net
proceeds of approximately US $39.6 million and these three credit agreements amounting to
US $122.4 million, further strengthen our liquidity position. We have an ongoing
newbuilding program and we may pursue further attractive vessel acquisition opportunities,
with new vessel designs currently under development by leading Japanese shipyards,
complying with upcoming regulations and incorporating technology advancements
providing for energy efficiency and environmental protection.’’