Hoegh Secures Funding for 9th FSRU
Hoegh LNG, the Norway-based and Bermuda-registered ship operator, has secured debt financing for its ninth floating LNG terminal vessel, it said August 3.
It said it received commitment letters for a $177mn debt financing for floating storage and regasification unit number 9, which is scheduled to be delivered next quarter. It comprises a 12-year tranche of $132mn guaranteed by South Korean export credit agency K-Sure, and a five-year non-amortising commercial bank tranche of $45mn. A combination of existing and new lenders are participating in the facility.
The facility is available to fund 65% of the delivered cost of the FSRU based on a 16-year profile of paying off the loans. Hoegh LNG intends to fix the interest rate at about 5%, based on the current swap rate.
Of its eight existing FSRUs, seven are currently employed as floating LNG import terminals in Colombia, Egypt, Lithuania, India, Indonesia, Turkey, and China (latter usually winter-only), while Hoegh Giant began a three-year time charter as an LNG carrier to Spain's Naturgy (formerly Gas Natural) in February. Banner photo of Hoegh Grace, working as an FSRU at Cartagena, Colombia is courtesy of Hoegh LNG