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Avance Gas closes financing for VLGC newbuild programme

Norwegian shipowner Avance Gas has landed long-term financing for the last two vessels in its series of six dual-fuel very large gas carriers (VLGCs) under construction in South Korea.

The Oslo-listed company said it had penned an aggregate $135m sale-and-leaseback deal with China’s Bocomm Leasing for the 91,000 cu m newbuildings Avance Castor and Avance Pollux set to deliver from Daewoo Shipbuilding & Marine Engineering (DSME) in the fourth quarter of 2023 and the first quarter of 2024.

Earlier in May the John Fredriksen-controlled Avance Gas signed a $555m sustainability-linked loan to refinance nine VLGCs, including financing of the third and fourth newbuild, Avance Rigel and Avance Avior and an accordion option to finance the final two vessels.

“The transaction completes the financing of the newbuilding program with no unfunded capex remaining and is expected to release approximately $39m in net cash at delivery,” the company said in its Q2 earnings report.

Avance Gas currently operates a fleet of 13 VLGCs. The company logged a net profit of $18.4m for the second quarter of this year and declared a dividend of $0.20 per share.

Adis Ajdin

Adis is an experienced news reporter with a background in finance, media and education. He has written across the spectrum of offshore energy and ocean industries for many years and is a member of International Federation of Journalists. Previously he had written for Navingo media group titles including Offshore Energy, Subsea World News and Marine Energy.
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