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First Ship Lease Trust
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zhuge_liang
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20-Jan-2007 12:00
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First Ship Lease, a privately held ship leasing and financing company in Singapore, is raising up to US$350 million from the listing of a business trust based on its portfolio of 13 vessels, banking sources said on Friday. FSL Trust will be Singapore's second shipping trust, following the listing last May of Pacific Shipping Trust which is backed by Singapore's second-biggest shipping firm Pacific International Lines. "FSL Trust could come to the market as early as next month," said one banker close to the deal. First Ship Lease provides financing to shipping and industrial companies. Its shareholders include Germany's HSH Nordbank AG, the world's biggest ship financier, and banking group HypoVereinsbank. Vessels in the FSL Trust portfolio include chemical tankers as well as container ships. Income from FSL's ship leases will be distributed to unitholders just as real estate investment trusts or REITs distribute rental income from properties. But, unlike REITs, FSL will not be subject to a gearing limit because it is a business trust. Income from the trust will also be tax-exempt as part of Singapore's drive to support the city-state's shipping industry. JP Morgan and Deutsche Bank are lead arrangers with CLSA and Macquarie Bank in co-lead arranging roles. Cheong Chee Tham, First Ship Lease's chief financial officer, declined to comment. |
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