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.”