Sovcomflot Reels In USD 1.26 Bn of Debt Financing

Russian shipping major Sovcomflot (SCF) has completed a series of financing transactions in the total amount of USD 1.26 billion, which include USD 750 million of unsecured public debt and USD 512 million of bank loans raised for to funding SCF’s fleet renewal and expansion programme and for the refinancing of maturing debt.

The company said that the latest in this series were new long-term credit facilities for a total amount of USD 252 million signed in August 2016 to finance the acquisition of nine ice-class tankers and two multifunctional icebreaking supply vessels as well as for refinancing of the company’s existing bank debt.

“With this latest round of financing we have fully covered Sovcomflot’s capex funding requirements, including for the recently completed acquisition of nine ice-class tankers and two ice-breaking platform supply vessels, and addressed the group’s refinancing needs,” Nikolay Kolesnikov, Executive Vice-President, Chief Financial Officer, said.

Earlier in June 2016, the company returned to the international debt capital markets with a new USD 750 million seven year Eurobond offering. The proceeds from the issue were used to fund a simultaneous tender offer for the group’s outstanding Eurobonds due in 2017 and to refinance other indebtedness.

Also, in June 2016, SCF signed a USD 260 million thirteen year loan agreement with VTB Bank for the financing of construction of the first Arctic LNG carrier for the Yamal LNG project. The vessel is due to be delivered in the first quarter of 2017.

“The new financings have allowed the group’s debt repayment profile to be enhanced significantly, have improved its liquidity position, and have strengthened the group’s overall corporate credit standing,” SCF said.

Share this article

Follow World Maritime News

Posted on September 12, 2016 with tags .

In Depth>

Events>

<< Jul 2019 >>
MTWTFSS
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31 1 2 3 4

World Gas Series: Morocco Summit

Bringing together key players in the gas value chain in Morocco, the World Gas Series:

read more >

GreenTech in Shipping USA Forum 2019

GreenTech in Shipping USA Forum is an event for Maritime leaders who want to unlock successful business formula of the industry!

read more >

Shipping Transformation Asia

Shipping Transformation Asia will provide a platform for future-focused discussion in the shipping,…

read more >

Global Sustainable Shipping Forum 2019

The event will provide valuable insights from conference sessions, great networking opportunities and will offer…

read more >