BW LPG has signed a $221m debt facility agreement for the financing of four of its VLGC newbuildings. The financing has been raised from ING Bank, KFW IPEX-Bank GmbH, Oversea-Chinese Banking Corporation (OCBC) and Standard Chartered Bank, as mandated lead arrangers.
ING Bank also acted as coordinator and facility agent. The loan is insured by Korea Trade Insurance Corporation (K-Sure). The all-in cost for this financing is LIBOR plus 1.60%, with an 18-year amortization profile.
BW LPG ceo, Martin Ackermann, commented, “We are very pleased with this financing, which leverages the well-priced Korean ECA lending to provide an exceptional all-in cost and structure. This is a clear demonstration of BW LPG’s platform value in obtaining market leading financing.”
BW LPG has also today taken delivery of BW Tucana, the seventh VLGC in its newbuilding programme of eight VLGCs from Hyundai Heavy Industries. With the BW Tucana, BW LPG has a fleet of 40 vessels, comprising 28 owned VLGCs, seven chartered-in VLGCs and five owned LGCs.
In addition, BW LPG has five VLGC newbuildings under construction.