Norwegian LPG carrier operator Avance Gas has announced that it has received credit approval for the refinancing of its 2015-built VLGC Pampero in a $45m sale and leaseback transaction with a Chinese leasing house.
The financing bears an implied 24-year age adjusted repayment profile and a credit margin of 3.1%.
The transaction will generate net cash proceeds of about $10m for Avance Gas and is expected to close in the fourth quarter.
According to Avance Gas, it has seen a rebound in LPG freight markets in the third quarter as LPG demand starts to return to normal trajectories, while the LPG price differential has developed positively, combined with lower fleet capacity due to drydocking and slow steaming of the fleet.
Avance Gas reported a net profit of $6.7m in the second quater.