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Order of 10 Bulk Carriers From Yangzijiang Would Be First in Four Years
Iran wants to return to the non-oil shipbuilding market with a $300 million potential order of 10 bulk carriers from Singapore-listed shipbuilder Yangzijiang Shipbuilding Holdings Ltd. BS6.SG +0.47% , which may be the first such delivery in four years, people with knowledge of the matter said.
The order, which could be completed over the next few weeks, involves 10 bulk carriers that would mainly used to accommodate Iran's huge iron-ore imports as well as copper exports. The people said the likely end-user of the 82,000-ton ships is Islamic Republic of Iran Shipping Lines, the country's biggest bulk carrier in terms of capacity.
"If finalized, the down payment will be handled by a private-equity fund, but the ships will be used by IRISL," one person said.
IRISL wasn't immediately available for comment.
Another person said the ships would be delivered in early 2017.
"Banks that will be involved in the financing are looking into the order to make sure that no sanctions are violated since it involves an Iranian entity. But chances are that if there is agreement on the price, the financing will go through," this person said, without elaborating.
Seeking to arrest Iran's progress toward developing nuclear weapons, the U.S. and other Western governments have imposed ever-tighter financial sanctions against the Persian Gulf country for nearly a decade. Western nations agreed in January to relax some sanctions in hopes of reaching a comprehensive antinuclear deal with Iran, but the partial relief is due to expire Sunday unless it is extended. Read more
Source: THE WALL STREET JOURNAL
