FESCO confirmed third container ship order in Poland

17 May 2005
Far-Eastern Shipping Company made use of third container ship order option on a Stoczia Szczecinska Nowa Yard, Poland.

Further to two container ships, already ordered in Poland till April 2008 one more vessel of 1730 TEU will be launched. The contract with yard was signed in April 2004.

Amount of contract for third container ship building was USD 30,5 million. Ship cost in option was higher then amount of contract for first two container ships due to delay of payment by yard customer, either due to world steel prices rise.

By FESCO proposal, yard requested for export financing for all three ships with the fixed CIRR (Commercial Interest Reference Rate) by Credit Export Agency of Poland (KUKE). Request was accepted and rate was fixed to 8,5 years as 4,36% on condition that commercial bank-agent will be provided with a project financing authorities. At present Far-Eastern Shipping Company carries on negotiations with Citibank N.A., London for a project financing.

First vessel of the Poland series should be launched in December 2007, the second- in February 2008. These will be the most contemporary and efficient vessels in FESCO fleet.

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Following decision of Khamovnichesky District Court of the city of Moscow and in response to numerous appeals from mass media, customers and partners FESCO Transportation Group (“FESCO”, the “Group”) deems it necessary to inform of the following.
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