Höegh LNG said it has secured $230 million debt financing for it eight floating storage and regasification unit (FSRU #8) currently under construction at Hyundai Heavy Industries in South Korea.
The facility comprises a 12-year export credit agency term loan of up to $150 million backed by Garantiinstituttet for Eksportkreditt and Eksportkreditt of Norway, and a 5-year non-amortising commercial bank loan of up to $80 million funded by ABN AMRO Bank, Danske Bank, Nordea and Swedbank.
The facility is available to fund 65 percent of the delivered cost of the FSRU with no employment requirement, increasing to 75 percent upon securing long-term employment.
Sveinung Støhle, president & CEO of Höegh LNG, said, “with this transaction, Höegh LNG is executing on its financial strategy of diversifying funding sources” to support the company’s growth.
Höegh LNG is continuing to focus on the growth of its FSRU business, with the objective of securing long-term contracts with strong counterparties.
The Oslo-based company has currently six FSRUs in operation and three more under construction. The eight FSRU is scheduled for delivery in the first quarter of 2018.