Höegh LNG Holdings Ltd. (Höegh LNG) has received commitment letters for a USD 230 million debt financing for FSRU#8 (the "Facility"). 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."
Source: Höegh LNG