Oslo: Singapore headquartered BW LPG has announced on Oslo Bors today that it has signed a debt facility agreement for up to $400m for the financing of seven VLGC newbuildings.
The financing was raised from The Export- Import Bank of Korea as export credit agency lender, with DNB Asia and Skandinaviska Enskilda Banken Singapore Branch as mandated lead arrangers and commercial lenders.
BW LPG ceo, Nicholas Gleeson, 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.”
The debt financing will be secured against the seven VLGC newbuilds, and the facility also contains the change of control provision that if Sohmen family interests cease to hold more than 50% in BW Group; BW Group ceases to hold more than 35% in the company; or another person or entity than BW Group acquires more than 50% in the company; the facility must be cancelled and repaid in full.
The seven vessels are on order at at Hyundai Heavy Industries (HHI) and due for delivery through 2015 and 2016.