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Höegh LNG receives financing for seventh FSRU

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LNG Industry,

Höegh LNG Holdings Ltd has announced that it has received commitment letters for the US$223 million financing of its seventh floating storage and regasification unit (FSRU). The financing is able to fund 65% of the delivered cost, with a 15-year amortisation profile increasing to 75% and 20 years, respectively, upon a long-term contract being secured. The structure, which has a five-year post-delivery tenor, has the flexibility to be able to be dropped down to Höegh LNG Partners LP together with the FSRU. The interest rate will be swapped, and it is expected that it will be fixed at approximately 3.8%. The commitments remain subject to final documentation. The vessel is scheduled for delivery at the end of 1Q17.

The President and CEO of Höegh LNG Holdings Ltd., Sveinung J.S. Støhle, said: “With this transaction, Höegh LNG has once again secured competitive debt financing for its FSRU fleet expansion, and this time at the lowest cost ever achieved by the company. The financing terms reflects the financial strength of Höegh LNG's balance sheet in addition to its position as the market leader in the FSRU segment."

Edited from press release by David Rowlands

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