Norway-based Höegh LNG has received commitment letters for a USD 177 million debt financing for its ninth floating storage and regasification unit (FSRU).

The unit, which is under construction at Hyundai Heavy Industries (HHI) shipyard in South Korea, is scheduled to be delivered in the fourth quarter of 2018.

The loan comprises a 12-year tranche of USD 132 million guaranteed by South Korean export credit agency K-SURE and a five-year non-amortising commercial bank tranche of USD 45 million.

A combination of existing and new lenders are participating in the facility, according to Höegh LNG.

The facility is available to fund 65% of the delivered cost of the FSRU based on a 16-year blended amortization profile. Höegh LNG intends to fix the interest rate and based on the current swap rate, the fixed interest rate is expected to be around 5%.

“Höegh LNG continues to diversify its funding sources while obtaining competitive debt financing that is supportive of the company’s commercial strategy,” Sveinung J.S. Støhle, President & CEO of Höegh LNG, said.