Sovcomflot Gets Funds for LNG Carrier Duo

Maritime Activity Reports, Inc.

May 8, 2019

Pic: Sovcomflot

Pic: Sovcomflot

Russian maritime shipping company specializing in petroleum and LNG shipping, (SCF Group) has signed a new $297 million limited recourse credit facility to finance its two next-generation LNG carriers.

The financing deal, with a duration of up to ten years, was concluded with three international banks – ING Bank, KfW IPEX-Bank, and Crédit Agricole Corporate and Investment Bank.

The funds will be used towards pre- and post-delivery financing of two new-generation 174,000-cubic metres Atlanticmax LNG carriers, which will operate under long-term charters to Shell.

The vessels feature a slow-speed dual-fuel X-DF diesel engine and gas boil-off partial liquefaction system. The first of these vessels is scheduled for delivery in the second half of 2020, the other in the first half of 2021.

The addition of these vessels will increase the Group’s liquefied gas carrier fleet to sixteen vessels, and is fully in line with the Group’s strategy of expanding its long-term business with core clients.

This deal follows a similar USD 149 million credit facility signed in November 2018, between SCF Group and these three banks, to finance the construction of an LNG carrier, which will operate on long-term charter to Total.

Nikolay Kolesnikov, Executive Vice-President & CFO of Sovcomflot, said: “SCF Group is pleased with this new LNG project financing with its long-standing financial partners: ING Bank; KfW IPEX-Bank, and Credit Agricole CIB. We very much value the involvement of these three prominent lenders in this deal, which was accomplished in direct continuation of a similar LNG financing concluded with these banks in November 2018, reflecting the banks’ long-term and strong commitment to SCF Group. With the conclusion of this deal, the Group has addressed in full its capital expenditure funding requirements for the next two years.”

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