Sovcomflot concludes LNGC financing

Thursday, 16 May 2019

Sovcomflot (SCF Group) has signed a $297 mill limited recourse credit facility, for up to 10 years.

Three leading international banks were involved: 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 174,000 cu m Atlanticmax LNGCs, which will operate under long-term charters to Shell.

They will be fitted with a slow-speed dual-fuel X-DF engine and a gas boil-off partial liquefaction system. The first vessel is scheduled for delivery in the second half of 2020, the second in the first half of 2021.

The addition of these vessels will increase SCF’s LNGC fleet to 16 vessels, and is fully in line with the group’s strategy of expanding its long-term business with core clients, it said.

This deal follows a similar $149 mill credit facility signed in November, 2018, between SCF and the three banks, to finance the construction of an LNGC, which will operate on long-term charter to Total.

Nikolay Kolesnikov, SCF Executive Vice President & CFO, 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,” he said.