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Dorian LPG bags $761m in financing for newbuilds

Dorian LPG bags $761m in financing for newbuilds
Dorian LPG has completed financing of its newbuild programme with $761m in debt across four tranches involving seven commercial banks and the Export Import Bank of Korea (KEXIM).

Dorian has 16 VLGCs under construction, which will add to an existing fleet of six VLGCs and one pressurised LPG vessel. The debt will be secured by 18 of the VLGCs, "among other things."

Tranche one of the finance is $250m in commercial debt provided by ABN AMRO, ING Bank, DVB Bank, Citibank and Commonwealth Bank of Australia. KEXIM is directly supplying $205m of financing, and guaranteeing a further $230m, with Korea Trade Insurance Corporation (K-sure) insuring $103m. The financing under KEXIM and K-sure guarantee is from Deutsche Bank and Santander Bank.

The debt comes in at 2.1% over LIBOR across all tranches, with an amortisation profile around 14 years. The finance is subject to final documentation, with Dorian hoping to close the deal in February.

Dorian chairman, John Hadjipateras, commented, "These commitments represent a key strategic milestone for our organisation as this financing will complete the funding for our newbuilding program with no need to raise any additional debt or equity to take delivery of our fleet of new Eco-VLGCs."