Skip to main content

Höegh LNG FSRU #10 receives backing

Published by
LNG Industry,


Höegh LNG Holdings Ltd. has received a commitment letter for sale and leaseback financing of up to US$206 million for its tenth FSRU. FSRU #10 is currently under construction at Samsung Heavy Industries in South Korea, and is scheduled for delivery in 2Q 2019.

The facility is provided by CCB Financial Leasing Co. Ltd. (CCBFL), a wholly owned subsidiary of China Construction Bank (CCB), and is available to fund 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. Höegh LNG intends to fix the interest rate, and based on the current swap rate environment, the fixed interest rate is expected to be around 6%. The facility is subject to final documentation.

Sveinung Støhle, CEO & President of Höegh LNG, stated: “With this sale and leaseback facility, Höegh LNG’s current newbuilding programme is now fully equity and debt funded. Combined with the recent three newbuilding debt facilities, Höegh LNG continues to demonstrate support from a wide group of leading international banks and credit institutions, now also including CCB. We are pleased to welcome CCBFL to our lending group and appreciate its support in the financing of the last FSRU in our current newbuilding programme, at a combination of tenor, amortisation profile, flexibility and interest rate that is attractive and supportive of our commercial strategy. This agreement is also fully in line with HLNG’s strategy of expanding our activities in China, where we currently have the FSRU Höegh Esperanza on charter to CNOOC, and are actively pursuing new projects.”

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/04092018/hoegh-lng-fsru-10-receives-backing/

 

Embed article link: (copy the HTML code below):