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SCF Group concludes credit facility that will fund LNG carrier

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LNG Industry,


Sovcomflot (SCF Group) has announced that it has signed a new US$149 million credit facility for a period of up to 10 years with a consortium of three international banks: ING Bank N.V.; KfW IPEX-Bank GmbH; and Crédit Agricole Corporate and Investment Bank.

According to the statement, these funds will be used to finance the construction of a new generation 174 000 m3 Atlanticmax LNG carrier. The vessel will feature a slow-speed tri-fuel X-DF diesel engine and gas boil-off partial liquefaction system. It will operate on long-term charters with Total Group.

SCF Group claims that the project facility benefits from a limited recourse structure and a favourable long-term tenor, as well as competitive pricing, reflecting the robustness and the high credit quality of the deal structure, underpinned by the stability of the charter hire revenue stream and cash flows.

The Senior Executive Vice-President and CFO of Sovcomflot, Nikolay Kolesnikov, said: “SCF Group is pleased to conclude this new long-term LNG financing with its three long-standing financial partners: ING Bank; KfW IPEX-Bank, and Credit Agricole CIB. We very much value the involvement of these high-profile lenders in this deal, reflecting their in-depth understanding of the transaction and their strong commitment to SCF Group, and welcome this opportunity to further expand the relationship with them.

“This is the fifth successful international debt financing accomplished by SCF Group in 2018, which further strengthens the Group’s liquidity position and, despite challenging conditions in the global financial and shipping markets, enables it to address its upcoming financial requirements. We are very grateful to all our financial partners for their on going support towards the growth of our business.”

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/15112018/scf-group-concludes-credit-facility-that-will-fund-lng-carrier/

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