GasLog secures $1.3bn loan from 14 banks
Monaco-based owner and operator of LNG carriers, GasLog has secured an export credit agency-backed debt financing facility for $1.3bn from 14 international banks for its current newbuilding programme.
The newbuilding programme, called the Newbuild Facility, covers eight vessels, which are slated to be delivered between 2016 and 2019.
Under the terms of the agreement, the loan will have a tenor of up to 12 years with an amortisation profile of 15 years from vessel delivery.
Additionally, all seven vessels with contracts are eligible for future dropdown into GasLog Partners LP.
Upon completion, seven of the eight vessels will be chartered to a subsidiary of BG Group under long-term contracts ranging between seven and ten years.
The total estimated amount for the ships stands at $1.5bn, and $1.3bn will be provided by Newbuild Facility. GasLog expects the remaining to be covered by cash on its balance sheet or operational cash flow.
GasLog chief financial officer Simon Crowe said: "I am delighted we have completed GasLog's largest financing to date, which was executed during a period of volatility in the global energy sector. This Newbuild Facility further strengthens GasLog's robust financial platform, which is backed by almost $4bn of contracted revenue.
"We have been very pleased to see both new and existing lenders in this facility, demonstrating the appetite from a range of international banks to lend to companies with modern assets with solid contracts at good rates. The support of KEXIM and K-Sure further adds to the attractiveness of this facility."
Four of the eight vessels are slated to be delivered in 2016, three in 2018 and remaining one in 2019.