Okeanis Eco Tankers Gets Funds for Two VLCC Newbuilds

Alafouzos family backed Greek tanker company Okeanis Eco Tankers has secured firm commitments for two secured loan facilities for an aggregate amount of $116.3 million from Credit Suisse AG and BNP Paribas in respect of the financing of two of its VLCC newbuildings, under construction at Hyundai Heavy Industries.

According to a press release from Piraeus-based shipping group, the Facilities each carry an interest rate over Libor of less than 2.5%, a 6-year tenor, a blended average repayment profile of 17.5-years, and allow for drawdowns to finance pre-delivery yard instalments.

These commitments mark the successful conclusion of the first step in the Company’s efforts to secure competitive financing for its last four VLCC newbuildings, in line with the Company’s previous guidance.

The Company is in advanced discussions with potential lenders in respect of its two remaining unfinanced VLCC newbuildings and expects to conclude financing arrangements for these on substantially similar terms to the Facilities.

While these discussions are yet to be concluded, the Company remains confident that bank finance on acceptable terms will be secured in respect of the two remaining VLCCs within November 2018, thus drawing to a close the debt financing of the Company’s newbuilding program.

In parallel, the Company has initiated the process of up-listing the Company’s shares from Merkur Markets to Oslo Axess, a regulated market operated by Oslo Børs ASA.

 In connection therewith, the Company will, inter alia, contact a select group of potential investors (including existing shareholders in the Company) to discuss a potential equity raise of up to USD 55,000,000.

Depending on the circumstances, the Company may resolve to effect such equity raise as a private placement of common shares expected in the near term, with a view to satisfying the Oslo Axess listing requirements and financing the remaining equity portion of the Company’s newbuilding program.