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Sovcomflot concludes $297m financing for two LNG newbuilds

Russia’s Sovcomflot Group has concluded a new $297m financing facility with three international banks for its two new-generation 174,000 cu m LNG carriers which will operate under long term charters to oil major Shell.

The $297m limited recourse credit facility is for up to 10 years with ING Bank, KfW IPEX-Bank and Credit Agricole Corporate and Investment Bank.

The funds will be used towards pre- and post-delivery financing of the Atlanticmax LNG carrier pair, with the first unit scheduled for delivery in the second half of 2020 and the second in the first half of 2021.

“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 Sovcomflot Group. With the conclusion of this deal, the group has addressed in full its capital expenditure funding requirements for the next two years,” said Nikolay Kolesnikov, executive vice president and cfo of Sovcomflot.

The latest deal follows a similar $149m credit facility signed in November 2018 between Sovcomflot and these three banks to finance the construction of one LNG carrier, which will operate on long term charter to French oil major Total.

The two new 174,000 cu m LNG carriers will feature a slow speed dual-fuel X-DF diesel engine and gas boil-off partial liquefaction system.

The addition of these vessels will increase Sovcomflot’s liquefied gas carrier fleet to 16 vessels.

Read more: Shell charters six LNG newbuilds from TMS Cardiff Gas and Sovcomflot

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