Norden Seals Financing for Its USD 1Bln Fleet Renewal

Danish shipping company Norden said that it has secured three new credit facilities, worth a total of USD 187 million.

Two loans have been agreed with Scandinavian banks and the remaining one with a Japanese bank. The said financing puts USD 433 million of undrawn credit facilities at Norden’s disposal, the company added.

The new credit facilities will be used for partial financing of the shipping company’s extensive newbuilding programme comprising 37 vessels (31 dry cargo vessels and 6 product tankers ) at a total value of more than USD 1 billion. Until now, 9.5 of the newbuildings have been delivered, the company said in its Norden News magazine.

Two more eco product tankers are scheduled to join Norden’s fleet after the New Year.

The duo forms part of a four vessel order placed with the South Korean yard STX Offshore & Shipbuilding.

The newbuild tankers are going  to be 11-12% more fuel efficient than current units in Norden’s fleet, featuring a slimmer hull and two more meters in length.

Due to weaker market conditions Norden recorded third quarter  EBITDA of USD -11 million against USD 19 million in the same quarter in 2013.

However, according to Norden’s interim CEO Klaus Nyborg, despite the unsatisfactory results in the third quarter,  the company “can be pleased that it seems like 2014 will end with a good tanker market.”

“Rates within MR and Handysize, which are the two vessel types owned by Norden in product tankers, are at their highest level since the financial crisis. The upturn has come swiftly and with great strength, which emphasises the importance of Norden being geared as an organisation for taking advantage of the opportunities arising. This is what we will be focusing on in the year to come,” he wrote in the company’s magazine.

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