Liquefied petroleum gas trading and transport company Petredec Limited has inked a financing deal with German lender KfW IPEX-Bank worth USD 186.3 million.
The loan is intended to finance construction of the company’s four new handy size gas carriers.
Components sourced from Germany account for EUR 50.4 million of total financing and will be disbursed under a complex financing structure covered by export credit insurance from Euler Hermes. They will be supplied by TGE Marine GmbH, headquartered in Bonn. The company will supply gas and tank systems for the ships, the bank informed.
Mike Abbott, Chief Financial Officer of Petredec Limited, said: “ KfW IPEX-Bank offered us a convincing overall financing package based of an innovative structuring idea. We are pleased to work with the German specialist financier as well as the German exporter who will contribute its technical expertise to the project.”
“Under a component-based ship financing we have successfully structured partial coverage for German equipment supplies where the shipowner is not direct but indirect buyer of the components. By providing complementary financing we are supporting the German exporter TGE Marine GmbH, a member of the German Maritime Export Initiative (GeMaX), to sell cutting-edge technology made in Germany, ” said Dr Carsten Wiebers, Global Head of Maritime Industries at KfW IPEX-Bank .
The four 21,000 cbm carriers will be built at an Asian shipyard. Petredec will use the tankers to transport liquefied gases, which may include LPG (Liquefied Petroleum Gas), ethane, ethylene or selected petrochemicals. The LPG trader transports in excess of 10 million tonnes of LPG every year by sea.