GasLog secures $1.3bn loan to fund LNG newbuildings

GasLog secures $1.3bn loan to fund LNG newbuildings

GasLog Ltd has secured export credit agency-backed debt financing for $1.3bn from 14 unnamed international banks that will fully finance its newbuilding programme.

The Export Import Bank of Korea (KEXIM) and the Korea Trade Insurance Corporation (K-Sure) are either directly lending or providing cover for over 60% of the facility, GasLog said.

The NYSE-listed owner has eight 174,000-cbm LNG carriers under construction in Korea, of which six are being built at Samsung and two at Hyundai Heavy Industries. Half the vessels are scheduled to arrive next year, three will follow in 2018 and another in 2019.

After their delivery, seven of LNG carriers will be chartered to BG Group on long-term contracts of between seven and ten years. These vessels are eligible for to dropdown into GasLog Partners LP in the future, the company said.

“I am delighted we have completed GasLog’s largest financing to date, which was executed during a period of volatility in the global energy sector. This newbuild facility further strengthens GasLog’s robust financial platform, which is backed by almost $4bn of contracted revenue,” said Simon Crowe, CFO of GasLog.

“The strong relationships we have with our lenders and our stated strategy of long-term contracted business with reputable customers were imperative in securing attractive tenor and rates on this facility.”

Citibank and Nordea Bank acted as global co-coordinators, bookrunners and mandated lead arrangers for the deal.  The other lead arrangers are Bank of America National Association, BNP Paribas, Credit Agricole Corporate and Investment Bank, Credit Suisse, HSBC Bank, ING Bank, KEB Hana Bank, KfW IPEX-Bank, National Australia Bank Limited, Oversea-Chinese Banking Corporation, Societe Generale and The Korea Development Bank.

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.

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