French Bank Joins SEA\LNG
SEA\LNG, the industry coalition that aims to promote LNG as a marine fuel, said January 9 it had recruited its first bank as a member, France's Societe Generale (SocGen).
The coalition now has at least 31 members.
SocGen's global head of shipping financing Paul Taylor said: "Use of LNG as a marine fuel is gradually becoming a global reality. In line with our wider environmental commitment to promoting greener solutions... Societe Generale wants to play a key role in supporting the SEA\LNG coalition to realise its goal of making LNG a viable maritime fuel for 2020 and beyond. This strategic membership will help develop a long-term financial framework which we hope will contribute to, and supplement, the work of other industry leaders in the LNG shipping value chain.”
SocGen acted as the sole mandated lead arranger, hedge provider, and lender in a €142.6mn ($170mn) French lease financing of Honfleur, Brittany Ferries' first LNG-powered ferry, which received a funded guarantee from the European Investment Bank. Total, another SEA\LNG member, will supply Honfleur's bunker LNG.
SocGen has long been a key financier of LNG export projects worldwide. Rival bank BNP Paribas however took a radically divergent decision three months ago, namely to cease any financing relationships with companies involved in shale gas, including ventures that liquefy it into LNG -- a move that now precludes it from lending to North American LNG export schemes.