Höegh LNG Secures Debt Financing for 9th FSRU

Maritime Activity Reports, Inc.

August 3, 2018

Image: Höegh LNG

Image: Höegh LNG

Norway's floating storage and regasification unit (FSRU) giant Höegh LNG said it has secured a USD 177 million debt financing for its FSRU delivery unit number 9. The FSRU is scheduled to be delivered in the fourth quarter of 2018.

 The facility comprises a 12-year tranche of USD 132 million guaranteed by K-SURE (South Korean export credit agency) and a five-year non-amortising commercial bank tranche of USD 45 million. A combination of existing and new lenders are participating in the facility.

The facility is available to fund 65% of the delivered cost of the FSRU based on a 16-year blended amortization profile. Höegh LNG intends to fix the interest rate and based on the current swap rate, the fixed interest rate is expected to be around 5%. The facility is subject to final documentation.

Sveinung J.S. Støhle, President & CEO of Höegh LNG, stated: "Höegh LNG continues to diversify its funding sources while obtaining competitive debt financing that is supportive of the company’s commercial strategy. We are very pleased with K-SURE’s support on this transaction and to extend our lending group with one new bank. We also appreciate very much the continued strong support from core banks.”

Höegh LNG provides floating energy solutions and operates world-wide with a leading position as owner and operator of floating LNG import terminals; floating storage and regasification units (FSRUs), and is one of the most experienced operators of LNG Carriers (LNGCs).

Höegh LNG's vision is to be the industry leader of floating LNG solutions and the strategy is to continue to focus its growth plans in the FSRU market, with the objective of securing long-term contracts with strong counterparties at attractive returns.

Höegh LNG is a Bermuda based company with established presence in Norway, Singapore, the UK, USA, South Korea, Indonesia, Lithuania, Egypt, Colombia and Turkey. The company employs approximately 125 office staff and 500 seafarers.

Maritime Reporter Magazine Cover Nov 2019 - Workboat Edition

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Subscribe
Maritime Reporter E-News subscription

Maritime Reporter E-News is the maritime industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News