Update on PST’s financing for recent acquisitions

SGX-ST Announcement - 17 March 2011

PST Management Pte. Ltd. (“PSTM” or “Trustee-Manager”), the trustee-manager of Pacific Shipping Trust (“PST”), is pleased to announce that it has secured bilateral financing commitments for a total of US$132 million from Oversea-Chinese Banking Corporation Limited, Standard Chartered Bank and ING Bank N.V. to fund its purchase, announced on 26 November 2010, of five new 57,000 DWT Supramax Bulk Carriers. These new vessels have been time-chartered to Glovis Co., Ltd, Korea for periods of 8 and 10 years respectively.

Together with the bilateral loans of US$150 million granted by DBS Bank Ltd, Malayan Banking Berhad and Bangkok Bank Public Company Limited (also announced on 26 November 2010) to fund the purchases of two Capesize Bulk Carriers (chartered to Jiangsu Shagang Group Co., Ltd) and two Multi-Purpose Vessels (chartered to Xiamen Ocean Shipping Company), PST has obtained commitments for a total of US$282 million to finance the acquisition of its nine new vessels (the “Acquisitions”). These financing arrangements are a good reflection of the confidence of the banks in PST’s business model of chartering good quality vessels to financially strong counterparties on long-term charters.

The proceeds of these bank financings, together with the funds made available from PST’s existing cash retention programme and advances from Pacific International Lines (Private) Limited (PST’s majority unitholder), should make it unnecessary for PST to raise new equity for funding the Acquisitions in the immediate future. Existing unitholders should benefit from these transactions when the contracted charter earnings come on-stream, raising total revenue by US$552 million to almost US$800 million, extending through 2023.

By Order of the Board
PST Management Pte. Ltd.
(Company Registration No. 200602579M)
(as Trustee-Manager of Pacific Shipping Trust)
Lim Sim Keat
Chief Executive Officer
17 March 2011

About Pacific Shipping Trust
Pacific Shipping Trust is the first business trust listed on the SGX-ST. It provides structured financing solutions to established shipping companies, thereby generating visible and stable cashflow stream through long-term charters. By acquiring vessels and leasing them to reputable charterers on long-term bareboat or time charters, PST seeks to generate a steady stream of high-yielding income for its unitholders. The trustee-manager of PST is PST Management Pte. Ltd., a wholly-owned subsidiary of Pacific International Lines (Private) Limited, one of the largest private shipowner and operator in South East Asia.

PST Management Pte. Ltd. press release.