Hoegh Lines Up Finance for Tenth FSRU

Bermuda-registered shipowner Hoegh LNG Holdings said September 4 it has secured debt-financing for its tenth LNG import terminal, a floating storage and regasification unit (FSRU).

It has received a commitment letter for a sale and leaseback financing for FSRU #10 of up to $206mn. The ship is now being built at Samsung Heavy Industries in South Korea and due for delivery in 2Q 2019. The financing is provided by CCB Financial Leasing, which is wholly owned by China Construction Bank, and will cover 70% of the delivered cost of the FSRU, increasing to 80% once long-term employment for the unit has been secured. The facility bears a 20 year amortisation profile and has a tenor of 12 years. Hoegh LNG expects to fix the interest rate at around 6%. The financing is subject to final documentation.

Hoegh LNG CEO Sveinung Stohle said the agreement is "fully in line with HLNG's strategy of expanding our activities in China, where we currently have the FSRU Hoegh Esperanza on charter" to Chinese state oil and gas producer/importer CNOOC, and where Hoegh is actively "pursuing new projects." (The banner photo shows the Esperanza, and is courtesy of Hoegh LNG.)

Norway-based Hoegh has eight FSRUs, of which seven are floating LNG import terminals in Colombia, Egypt, Lithuania, India, Indonesia, Turkey, and (winter-only) China. A month ago it secured financing for its ninth FSRU which is due for delivery late this year.