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SCF Group signs US$260 million loan agreement with VTB Bank

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LNG Industry,

PAO Sovcomflot (SCF Group) has announced that it has signed a 13-year loan agreement with VTB Bank worth US$260 million. The loan will help finance the construction of an Arctic LNG tanker for the Yamal LNG project.

The new Arc 7 enhanced ice class vessel will be capable of carrying up to 172 600 m3 of LNG, and able to independently navigate ice fields of up to 2.1 m thick. It will feature a 45 MW propulsion system and is scheduled for delivery in 1Q17.

The CEO of Sovcomflot, Sergey Frank, said: “We are delighted to expand our cooperation with VTB, our long-standing partner and one of the Russian banking market leaders. We are completing the construction of an innovative vessel, which has no analogues in the world to date, and we have concluded a unique transaction to finance this project. This is one of the first such agreements ever signed in Russia, to finance a vessel construction, which is traditionally a very capital-intensive and long-term investment project. I am confident that the solid performance delivered by our company will enable it to continue to be a reliable and attractive partner for Russian banks.”

The President and Chairman of VTB Bank’s management board, Andrei Kostin, added: “VTB Bank always takes part in innovative and high-tech projects with great interest. The loan to Sovcomflot, Russia’s largest shipping company, will be used to build a unique new ice-resistant LNG tanker for the Russian Arctic. I’m confident it will help Russia further develop this harsh territory.”

Edited from press release by David Rowlands

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