Peter Livanos-backed Monaco-headquartered owner and operator of liquefied natural gas (LNG) carriers GasLog Ltd. has completed a USD 1.3 billion credit facility with fourteen international banks to finance the construction of eight 174,000 cbm newbuilds.
New York-listed GasLog says 14 banks, plus two export credit agencies, have supported the facility. 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.
GasLog 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.
Simon Crowe, chief financial officer of the shipowner, said in a statement: “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.”
He adds the company’s $4bn in long-term contracts were imperative in securing attractive terms on the facility.
”This Newbuild Facility further strengthens GasLog’s robust financial platform, which is backed by almost $4 billion of contracted revenue. 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,” Simon said.
GasLog’s fully-owned fleet includes 19 LNG carriers (including 11 ships in operation and the 8 LNG carriers on order), and the company has four LNG carriers operating under its technical management for third parties. GasLog Partners LP, a master limited partnership formed by GasLog, owns further eight LNG carriers.