Höegh LNG : Secures debt financing for FSRU delivery #10

Report this content

Hamilton, Bermuda, 4 September 2018 -  Höegh LNG Holdings Ltd. (“Höegh LNG” or the “company”) has received commitment letter for a sale and leaseback financing for FSRU #10 of up to USD 206 million (the “facility”). FSRU #10 is currently under construction at Samsung Heavy Industries in South Korea, and is scheduled for delivery in the second quarter of 2019.

The facility is provided by CCB Financial Leasing Co. Ltd. (“CCBFL”), a wholly owned subsidiary of China Construction Bank (“CCB”), and is available to fund 70% of the delivered cost of the FSRU, increasing to 80% once long-term employment for the unit has been secured. The facility bears a 20 year amortisation profile and has a tenor of 12 years. Höegh LNG intends to fix the interest rate, and based on the current swap rate environment, the fixed interest rate is expected to be around 6%. The facility is subject to final documentation.

Sveinung J.S. Støhle, CEO & President of Höegh LNG, stated: “With this sale and leaseback facility, Höegh LNG’s current newbuilding programme is now fully equity and debt funded. Combined with the recent three newbuilding debt facilities, Höegh LNG continues to demonstrate support from a wide group of leading international banks and credit institutions, now also including CCB. We are pleased to welcome CCBFL to our lending group and appreciate its support in the financing of the last FSRU in our current newbuilding programme, at a combination of tenor, amortisation profile, flexibility and interest rate that is attractive and supportive of our commercial strategy. This agreement is also fully in line with HLNG’s strategy of expanding our activities in China, where we currently have the FSRU Höegh Esperanza on charter to CNOOC, and are actively pursuing new projects”

* * *

About Höegh LNG:

 Höegh LNG 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. Its strategy is to develop the business through an extended service offering, with large-scale FSRUs as the main product, and focus on establishing long-term contracts with attractive risk-adjusted returns involving credible counterparts. The company is publicly listed on the Oslo stock exchange under the ticker HLNG, and owns approximately 46% of Höegh LNG Partners LP (NYSE:HMLP). 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 125 office staff and 525 seafarers.

Contacts:

Sveinung J. S. Støhle, President and Chief Executive Officer, Telephone +47 975 57 402
Steffen Føreid, Chief Financial Officer, Telephone +47 975 57 406
Erik Folkeson, VP IR and Strategy, Telephone +47 414 21 769

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act or the Continuing Obligations of Oslo Børs.

Subscribe