Sovcomflot secures $127m financing for LNG carriers

Sovcomflot secures $127m financing for LNG carriers

Russian shipping company Sovcomflot has secured a US $297 million ten-year financing facility with ING Bank, KfW IPEX-Bank and Crédit Agricole Corporate and Investment Bank to fund a pair of liquefied natural gas (LNG) carriers, which will operate under long-term charters to Shell.

The 174,000 CBM Atlanticmax LNG carriers will each feature a slow-speed dual-fuel X-DF diesel engine and gas boil-off partial liquefaction system.

The funds will be used towards pre and post-delivery financing of the two carriers.

The deal follows a similar $149 million credit facility signed in November 2018, between SCF Group and these three banks, to finance the construction of an LNG carrier, which will operate on long-term charter to Total.

“SCF Group is pleased with this new LNG project financing with its long-standing financial partners: ING Bank; KfW IPEX-Bank, and Credit Agricole CIB. We very much value the involvement of these three prominent lenders in this deal, which was accomplished in direct continuation of a similar LNG financing concluded with these banks in November 2018, reflecting the banks’ long-term and strong commitment to SCF Group. With the conclusion of this deal, the Group has addressed in full its capital expenditure funding requirements for the next two years,” said Nikolay Kolesnikov, executive vice-president & CFO of Sovcomflot.

The delivery of the vessels will increase Sovcomflot’s LNG carrier fleet to 16 vessels.

The first vessel is scheduled for delivery in the second half of 2020, with the second expected in the first half of 2021.