Very Large Gas Carrier (VLGC) owner BW LPG has signed an agreement for a debt facility worth up to USD 400 million for financing seven of its VLGC newbuildings.
The loan comprises an ECA tranche of up to USD 268 million, representing approximately 67% of the facility amount, and a commercial tranche of up to USD 133 million, split equally between the two commercial lenders, representing approximately 33% of the facility amount.
The financing has been raised from the Export-Import Bank of Korea (KEXIM) as export credit agency (ECA) lender, DNB Asia Limited and Skandinaviska Enskilda Banken AB (Publ), Singapore Branch, (SEB) as mandated lead arrangers and commercial lenders.
DNB and HSBC Bank Plc. (HSBC) acted as ECA structuring advisors with HSBC also acting as ECA coordinator, the company said in a filling with Oslo Stock Exchange.
“This facility, we believe, is a market leading financing in terms of pricing, tenor and structure and reflects the strong continued support that the company enjoys from its banks and the lending community. This facility is a culmination of a substantial effort from our team and also the Banks and financial institutions involved, to all of whom we would like to express our sincere gratitude,” said Vijay Kamath, BW LPG Chief Financial Officer.
The company said that it expects to close the first drawdown under the transaction in February.