Höegh LNG Holdings Ltd. has received commitment letters for a US$ 177 million debt financing for its ninth FSRU, which is scheduled to be delivered in Q4 2018.
The facility comprises a 12-year tranche of US$132 million guaranteed by K-SURE (South Korean export credit agency) and a five-year non-amortising commercial bank tranche of US$45 million. 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 blended amortisation 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%. The facility is subject to final documentation.
Sveinung J.S. Støhle, President & CEO of Höegh LNG, stated: "Höegh LNG continues to diversify its funding sources while obtaining competitive debt financing that is supportive of the company’s commercial strategy. We are very pleased with K-SURE’s support on this transaction and to extend our lending group with one new bank. We also appreciate very much the continued strong support from core banks.”
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/03082018/hegh-lng-secures-debt-financing-for-ninth-fsru/