Owner and operator of floating LNG import terminals Höegh LNG Holdings has received commitment letters for a USD 230 million debt financing for its eight FSRU.
The vessel is under construction at South Korean Hyundai Heavy Industries (HHI) and slated for delivery in the first quarter of 2018.
The loan facility comprises a 12-year export credit agency term loan of up to USD 150 million backed by Garantiinstituttet for Eksportkreditt (GIEK) and Eksportkreditt of Norway, and a 5-year non-amortising commercial bank loan of up to USD 80 million funded by ABN AMRO Bank, Danske Bank, Nordea and Swedbank, Höegh LNG informed.
Furthermore, the facility is available to fund 65% of the delivered cost of the FSRU with no employment requirement, increasing to 75% upon securing long-term employment. The interest rate will be swapped from floating to fixed, and at the current market conditions the fixed interest rate is expected to come in at around 4.1%, the company further noted.
“With this transaction, Höegh LNG is executing on its financial strategy of diversifying funding sources, while obtaining a flexible and competitive debt financing structure that supports the company’s growth strategy. The favorable financing terms reflect Höegh LNG’s strong balance sheet and track-record in securing and operating long-term FSRU contracts,” Sveinung J.S. Støhle, President & CEO of Höegh LNG, said.
The financing is, however, subject to final documentation.
Höegh LNG has seven FSRUs in operation and three FSRUs under construction at HHI and Samsung Heavy Industries. The newbuildings have scheduled delivery dates in the first quarter of 2018, the fourth quarter of 2018 and the second quarter of 2019 respectively.