Hoegh obtains commitment letter for up to $206 million of financing

By Sarah Lizee

Olympia, Wash., Sept. 4 – Hoegh LNG Holdings Ltd. received a commitment letter for up to $206 million of sale and leaseback financing for its floating storage regasification unit #10, according to a press release.

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., a wholly owned subsidiary of China Construction Bank, 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 amortization profile and has a tenor of 12 years.

The company said it intends to fix the interest rate, and based on the current swap rate environment, the fixed interest rate is expected to be around 6%.

Hoegh LNG is a Norwegian owner and operator of floating liquefied natural gas import terminals. The holding company is based in Hamilton, Bermuda.

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