GasLog Wraps Up USD 1.3 Billion Newbuild Facility

Monaco-headquartered owner and operator of liquefied natural gas (LNG) carriers GasLog Ltd. has completed a USD 1.3 billion credit facility with fourteen international banks to finance the construction of eight 174,000 cbm newbuilds.

The eight carriers will be delivered between 2016 and 2019, with seven of them to serve long-term contracts of between 7 and 10 years under a subsidiary of BG Group plc following the deliveries. All seven vessels with contracts are eligible for future dropdown into GasLog Partners LP.

Six carriers were ordered at South Korea’s Samsung Heavy Industries, with the remaining two to be built by Hyundai Heavy Industries. Four vessels are scheduled for delivery in 2016, three in 2018, and one in 2019.

The loan is backed by the Export Import Bank of Korea (KEXIM) and the Korea Trade Insurance Corporation (K-Sure), who are either directly lending or providing cover for over 60% of the facility.

GasLog’s outstanding capital expenditure for its eight-vessel newbuild programme is approximately USD 1.5 billion, with USD 1.3 billion of debt provided by the facility, representing all planned financing for the vessels. As the vessels are delivered over the next four years, it is intended that the outstanding balance will be funded by cash on GasLog’s balance sheet and operational cash flow.

“I am delighted we have completed GasLog’s largest financing to date, which was executed during a period of volatility in the global energy sector,” Simon Crowe, Chief Financial Officer of GasLog Ltd., said.

”This Newbuild Facility further strengthens GasLog’s robust financial platform, which is backed by almost $4 billion of contracted revenue. The strong relationships we have with our lenders and our stated strategy of long-term contracted business with reputable customers were imperative in securing attractive tenor and rates on this facility.”

GasLog’s fully-owned fleet includes 19 LNG carriers (including 11 ships in operation and the 8 LNG carriers on order), and the company has four LNG carriers operating under its technical management for third parties. GasLog Partners LP, a master limited partnership formed by GasLog, owns further eight LNG carriers.

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