BW LPG announces financing program for four VLGC newbuildings and takes delivery of BW Tucana

By Vessels

BW LPG Limited (BW LPG) announced on Wednesday that it has signed a Debt Facility Agreement of USD221 million for the financing of four of its VLGC newbuildings. The financing has been raised from ING Bank, KFW IPEX-Bank GmbH, Oversea-Chinese Banking Corporation Limited (OCBC) and Standard Chartered Bank, as Mandated Lead Arrangers. ING Bank also acted as coordinator and facility agent. The loan is insured by Korea Trade Insurance Corporation (K-Sure). The all-in cost for this financing is LIBOR plus 1.60%, with an 18-year amortization profile.

BW LPG announces financing program for four VLGC newbuildings and takes delivery of BW Tucana

Image: BW LPG

BW LPG Chief Executive Officer, Martin Ackermann, commenting on the financing said, “We are very pleased with this financing, which leverages the well-priced Korean ECA lending to provide an exceptional all-in cost and structure. This is a clear demonstration of BW LPG’s platform value in obtaining market leading financing. We are grateful to our lenders for their continued support.”

BW LPG Limited has also announced the delivery of BW Tucana, the seventh Very Large Gas Carrier (VLGC) in its newbuilding programme of eight VLGCs from Hyundai Heavy Industries. With the BW Tucana, BW LPG has a fleet of 40 vessels, comprising 28 owned VLGCs, seven chartered-in VLGCs and five owned LGCs. In addition, BW LPG has five VLGC newbuildings under construction.

Source: BW LPG