Financing agreement for six of the Company’s MR newbuildings

1 February 2010

TORM enters into a Chinese financing agreement for six of the Company’s MR newbuildings TORM has entered into a financing agreement for six newbuildings to be delivered between 2010 and 2012. The vessels are all in the MR class, i.e. of a size of approximately 52,000 dwt.

The financing agreement, which amounts to USD 170 million, has been concluded with The Export-Import Bank of China and runs for eight years. It is part of the letter of intent that TORM concluded with The Export-Import Bank of China in the summer of 2009 on a total financing facility of USD 500 million. The main conditions of the current agreement are in line with the Company's existing loan agreements.

The financing agreement was confirmed at a signing ceremony today at TORM’s headquarters in Hellerup. On this occasion the Chairman and President of The Export-Import Bank of China as well as the Chinese ambassador to Denmark were present.

In December 2009, TORM entered into a similar financing agreement for another six MR newbuildings for the amount of USD 167 million (announcement no. 18 - 2009).

“We are very pleased that TORM over the past two months has secured financing for 12 MR newbuildings for a total of USD 337 million. TORM has always had close relations with its banks, and this financing agreement supports this and strengthens TORM’s position in a continued challenging market,” CFO Roland M. Andersen says. As of 31 December 2009, the remaining investments in TORM’s newbuilding programme amounted to USD 455 million. With the recent agreement TORM’s unutilized loan facilities and cash total USD 700 million.

About TORM
TORM is one of the world’s leading carriers of refined oil products as well as a significant participant in the dry bulk market. The Company runs a fleet of approximately 140 modern vessels, principally through a pooling cooperation with other respected shipping companies who share TORM’s commitment to safety, environmental responsibility and customer service. TORM was founded in 1889. The Company conducts business worldwide and is headquartered in Copenhagen, Denmark. TORM’s shares are listed on the NASDAQ OMX Copenhagen (ticker: TORM) and on NASDAQ in New York (ticker: TRMD). For further information, please visit www.torm.com.

TORM, press release