Sovcomflot Gets $149m Credit Facility for LNG Carrier

Laxman Pai
Thursday, November 15, 2018

Russian maritime shipping company Sovcomflot has signed a new USD 149 million credit facility, for up to 10 years, with a consortium of three leading international banks, comprising: ING Bank, KfW IPEX-Bank GmbH, and Crédit Agricole Corporate and Investment Bank.

Russian shipowner specializing in petroleum and LNG shipping said that the funds will be used towards financing the construction of a new generation 174,000-cubic metres Atlanticmax LNG carrier.

The vessel will feature a slow-speed tri-fuel X-DF diesel engine and gas boil-off partial liquefaction system. The LNG carrier will operate on long-term charters with Total Group.

The project facility benefits from a limited-recourse structure and a favourable long-term tenor, as well as competitive pricing, reflecting the robustness and the high credit quality of the deal structure, underpinned by the stability of the charter hire revenue stream and cash flows.

Nikolay Kolesnikov, Senior Executive Vice-President & CFO of Sovcomflot, said: “SCF Group very much value the involvement of these high-profile lenders in this deal, reflecting their in-depth understanding of the transaction and their strong commitment to SCF Group, and welcome this opportunity to further expand the relationship with them."

Nikolay added: “This is the fifth successful international debt financing accomplished by SCF Group in 2018, which further strengthens the Group’s liquidity position and, despite challenging conditions in the global financial and shipping markets, enables it to address its upcoming financial requirements.”

Categories: People & Company News Shipbuilding Finance LNG Europe

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