Höegh LNG secures financing for eighth FSRU
Höegh LNG Holdings Ltd. says it has received commitment letters for a USD 230 million debt financing for FSRU#8. The Facility comprises a 12 year export credit agency ("ECA") term loan of up to USD 150 million backed by Garantiinstituttet for Eksportkreditt ("GIEK") and Eksportkreditt of Norway, and a 5 year non-amortising commercial bank loan of up to USD 80 million funded by ABN AMRO Bank, Danske Bank, Nordea and Swedbank.
The Facility is available to fund 65% of the delivered cost of the FSRU with no employment requirement, increasing to 75% upon securing long-term employment. The interest rate will be swapped from floating to fixed, and at the current market conditions the fixed interest rate is expected to come in at around 4.1%. The Facility is subject to final documentation.
Sveinung J.S. Støhle, President & CEO of Höegh LNG, stated: "With this transaction, Höegh LNG is executing on its financial strategy of diversifying funding sources, while obtaining a flexible and competitive debt financing structure that supports the Company's growth strategy. The favourable financing terms reflects Höegh LNG's strong balance sheet and track-record in securing and operating long-term FSRU contracts. We are very pleased with the excellent support we get from the leading ECAs and banks participating in this transaction."
Höegh LNG provides floating energy solutions and operates world-wide with a leading position as owner and operator of floating LNG import terminals; floating storage and regasification units (FSRUs), and is one of the most experienced operators of LNG Carriers (LNGCs). Höegh LNG's vision is to be the industry leader of floating LNG solutions and the strategy is to continue to focus its growth plans in the FSRU market, with the objective of securing long-term contracts with strong counterparties at attractive returns. Höegh LNG is a Bermuda based company with established presence in Norway, Singapore, the UK, USA, South Korea, Indonesia, Lithuania, Egypt, Colombia and Turkey. The company employs approximately 115 office staff and 500 seafarers.