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Sovcomflot concludes USD 297 million LNG vessels financing facility with three international banks

Sovcomflot (SCF Group) has signed a new USD 297 million limited recourse credit facility, for up to ten years, with three leading international banks: ING Bank; KfW IPEX-Bank, and Crédit Agricole Corporate and Investment Bank.

The funds will be used towards pre- and post-delivery financing of two new-generation 174,000-cubic metres Atlanticmax LNG carriers, which will operate under long-term charters to Shell. The vessels feature a slow-speed dual-fuel X-DF diesel engine and gas boil-off partial liquefaction system. The first of these vessels is scheduled for delivery in the second half of 2020, the other in the first half of 2021. The addition of these vessels will increase the Group’s liquefied gas carrier fleet to sixteen vessels, and is fully in line with the Group’s strategy of expanding its long-term business with core clients.

This deal follows a similar USD 149 million credit facility signed in November 2018, between SCF Group and these three banks, to finance the construction of an LNG carrier, which will operate on long-term charter to Total.

Nikolay Kolesnikov, Executive Vice-President & CFO of Sovcomflot, said:

“SCF Group is pleased with this new LNG project financing with its long-standing financial partners: ING Bank; KfW IPEX-Bank, and Credit Agricole CIB. We very much value the involvement of these three prominent lenders in this deal, which was accomplished in direct continuation of a similar LNG financing concluded with these banks in November 2018, reflecting the banks’ long-term and strong commitment to SCF Group. With the conclusion of this deal, the Group has addressed in full its capital expenditure funding requirements for the next two years.”

SCF Press Office

Sovcomflot (SCF Group) is one of the world's leading energy shipping companies, specialising in the transportation of crude oil, petroleum products, and liquefied gas, as well as the servicing of offshore oil and gas exploration and production. The company’s fleet includes 147 vessels with a total deadweight of over 12.8 million tonnes. Over 80 vessels have an ice class.

Sovcomflot is involved in servicing large oil and gas projects in Russia and around the world: Sakhalin-1; Sakhalin-2; Varandey; Prirazlomnoye; Novy Port; Yamal LNG, and Tangguh (Indonesia). The company is headquartered in Saint Petersburg, with offices in Moscow, Novorossiysk, Murmansk, Vladivostok, Yuzhno-Sakhalinsk, London, Limassol, and Dubai.

Currently, SCF has 13 gas carriers in operation and three under construction. The Group became an independent owner and operator of gas carriers in 2006, the first Russian company to successfully establish itself in this shipping segment. Key charterers of SCF’s gas fleet include: Gazprom; Sakhalin Energy; Shell; Yamal LNG; Sibur, and Tangguh LNG. Over 2018, SCF’s gas tanker fleet grew its share of the Group’s total revenue base to 17 per cent from 15.6 per cent in the prior year.