Dorian LPG secures financing for VLGC newbuildings
Dorian LPG informed that is has received commitments for up to $761 million of debt financing for its VLGC newbuilding program.
ABN AMRO Capital is acting as Global Coordinator, and Citibank is acting as Export Credit Agency Coordinator.
Dorian’s Chairman, John Hadjipateras, stated, “These commitments represent a key strategic milestone for our organization as this financing will complete the funding for our newbuilding program with no need to raise any additional debt or equity to take delivery of our fleet of new ECO VLGCs.”
The financing has four separate tranches. $250 million of commercial debt financing is being provided by ABN AMRO; ING Bank; DVB Bank; Citibank; and Commonwealth Bank ofAustralia. $205 million of financing is being provided directly by The Export Import Bank of Korea. The remaining $306 million of financing is being provided under tranches guaranteed by KEXIM ($203 million) and insured by the Korea Trade Insurance Corporation ($103 million). Financing under the KEXIM guaranteed and K-sure insured tranches will be provided by certain Commercial Lenders; Deutsche Bank AG and Santander Bank.
Pursuant to the commitments received by the company, the debt financing will be secured by, among other things, 18 of the company’s VLGC newbuildings, and will represent a loan-to-contract cost ratio of approximately 55%. The company expects to close the transaction in February.
Press Release; Image: Dorian LPG