Sinosure deal suggests big plans for Chinese shipping and offshore drilling

(Global Trade Review, London, 11 February 2015) ABN Amro has signed an agreement with Sinosure which will help the Chinese export credit agency boost its funding for shipping and offshore drilling. While no specific transactions have been earmarked for partner funding, the bank’s Asia head of export and project finance Erwin Boon tells GTR that the pair are already working on a “pipeline of projects” in these areas. In the usual ECA-backed model, the Dutch-headquartered ABN Amro is likely to provide medium and long-term financing to Chinese companies operating in the sector, guaranteed by Sinosure, while the Chinese agency is also hoping to draw on the bank’s experience in the sector. Sinosure has been previously active in the shipping sector however, its involvement in offshore drilling is less established and the latest move suggests that the ECA has been given a mandate by the Chinese government to increase its coverage of this sector. “It’s clear that the Chinese government has certain plans for shipping and offshore. Shipping is already huge. Production is higher in China than in Korea [where Kexim and K-Sure have been extremely active in the sector]. The Chinese government is managing that sector and Sinosure is one of the organisations that can play a substantial role in supporting it,” Boon says.