Sovcomflot and NYK seal $176m LNG vessel refinancing incorporating Poseidon Principles

Sovcomflot and NYK seal $176m LNG vessel refinancing incorporating Poseidon Principles

Sovcomflot and NYK Line have sealed a new $176m credit facility which will be used to refinance LNG carriers Grand Aniva and Grand Elena.

The eight year facility, with Sumitomo Mitsui Banking Corporation, Société Générale, and Shinsei Bank, includes the adoption of provisions for the banks to comply with the Poseidon Principles.

Nikolay Kolesnikov, executive vice-president and CFO of Sovcomflot, commented: “We are delighted to have concluded this new long-term financing agreement for our joint venture companies with NYK Line. We are grateful to our long-standing financial partners for their continued support and are pleased to welcome establishing relations with new international lenders.

“We are also pleased that this financing allows us to support the Poseidon Principles, a new initiative by the banking community aimed at decarbonisation of the shipping industry, and to promote responsible and sustainable shipping.”

The two LNG carriers are servicing the Sakhalin-2 project under long-term contracts with Sakhalin Energy.

Eleven major shipping banks formed the Poseidon Principles global framework in June, with the intention to integrate climate considerations into lending decisions in line with IMO’s greenhouse gas strategy to slash the industry’s carbon footprint by 50% by 2050.

Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.

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