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Clean Fuel

about 4 years ago

Seaspan pockets $1.4 billion for newbuild LNG-fueled vessels

Hong Kong-based operator and owner of containerships Seaspan, a subsidiary of Atlas, has secured $1.4 billion in finances to build ten LNG-fueled vessels.

1 minutes read
Seaspan pockets $1.4 billion for newbuild LNG-fueled vessels
Illustration only; Courtesy of Navingo

Hong Kong-based operator and owner of containerships Seaspan, a subsidiary of Atlas, has secured $1.4 billion in finances to build ten LNG-fueled vessels.

Thus, Seaspan wrapped up the last of its financings for its full 70 vessel newbuild program. This includes three vessels recently delivered (the “Newbuild Program”).

The proceeds from these financings total approximately $6.9 billion. Seaspan will specifically use it through the construction of the newbuilds to fund a total investment of around $7.6 billion.

The financing concluded on 23 December 2021. Moreover, it represents the last arrangement underway to secure financing for the full Newbuild Program.

Proceeds from the Financing total approximately $1.4 billion and finance ten 15,000 TEU LNG -fueled newbuild vessels (dual fuel).

Graham Talbot , CFO of Atlas and Seaspan, commented: “We have now concluded binding financing arrangements for our full Newbuild Program, solidifying our long-term liquidity. We have demonstrated consistent success in executing on attractive growth opportunities at the right time, while diligently managing associated risk. We do this by ensuring we enter into newbuild contracts only once a long-term lease is in place with one of our high-quality counterparties, and that we have a clear line of sight to financing the project.”

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The Financing combines two ship finance structures:

In addition, this represents the first time Korean ECAs have provided export buyer credit insurance and a guaranteed tranche for a JOLCO transaction.

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