Hoegh LNG secures debt financing for another FSRU

Hoegh LNG secures debt financing for another FSRU

Norwegian company Höegh LNG has received a commitment letter for a sale and leaseback financing from CCB Financial Leasing, the financial leasing arm of China Constrution Bank, for its tenth FSRU of up to $206m.

The FSRU is currently under construction at Samsung Heavy Industries in South Korea, and is scheduled for delivery in the second quarter of 2019.

The facility is available to fund 70% of the delivered cost of the FSRU, increasing to 80% once long-term employment for the unit has been secured. It bears a 20 year amortisation profile and has a tenor of 12 years.

“With this sale and leaseback facility, Höegh LNG’s current newbuilding programme is now fully equity and debt funded. Combined with the recent three newbuilding debt facilities, Höegh LNG continues to demonstrate support from a wide group of leading international banks and credit institutions, now also including CCB. We are pleased to welcome CCBFL to our lending group and appreciate its support in the financing of the last FSRU in our current newbuilding programme, at a combination of tenor, amortisation profile, flexibility and interest rate that is attractive and supportive of our commercial strategy. This agreement is also fully in line with HLNG’s strategy of expanding our activities in China, where we currently have the FSRU Höegh Esperanza on charter to CNOOC, and are actively pursuing new projects,” said Sveinung Støhle, CEO & president of Höegh LNG.

Last month, Höegh LNG also secured a $177m financing from South Korean credit agency K-SURE.

Jason Jiang

Jason worked for a number of logistics firms following his English degree, then switched this hands-on experience to writing and has since become one the most prolific writers on the diverse China logistics industry writing for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week. Jason’s access to the biggest shippers with business in China has proved an invaluable source of exclusives.

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