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Höegh LNG secures financing for FSRU

Höegh LNG has received commitment letters for a $230m debt financing for one of its FSRU newbuildings.

The facility comprises a 12-year export credit agency term loan of up to $150m backed by Garantiinstituttet for Eksportkreditt (GIEK) and Eksportkreditt of Norway, and a 5-year non-amortising commercial bank loan of up to $80m funded by ABN AMRO Bank, Danske Bank, Nordea and Swedbank.

The facility will be used to fund 65% of the delivered cost of the FSRU with no employment requirement, increasing to 75% upon securing long-term employment.

“With this transaction, Höegh LNG is executing on its financial strategy of diversifying funding sources, while obtaining a flexible and competitive debt financing structure that supports the Company’s growth strategy. The favourable financing terms reflects Höegh LNG’s strong balance sheet and track-record in securing and operating long-term FSRU contracts. We are very pleased with the excellent support we get from the leading ECAs and banks participating in this transaction,” said Sveinung J.S. Støhle, President & CEO of Höegh LNG.

Last week, Höegh LNG signed a MOU with Qatari shipowner Nakilat to explore collaboration in FSRUs.

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Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.
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