Hoegh LNG inks $685 million refinance deal for two FSRUs

Hoegh LNG Holdings signed a new deal with a group of banks to refinance its two FSRUs, both employed on long-term contracts in Germany.

The new loan facility agreement is for a total amount of $685 million and has a tenor of 10 years, according to a statement by Hoegh LNG.

Moreover, Hoegh LNG said it would use the cash to repay the existing loan facilities and general corporate use.

The facility is split in two tranches, one per vessel, and Hoegh LNG expects to complete the refinancing of Hoegh Esperanza in February.

Also, the refinancing of Hoegh Gannet is expected to be completed March/April, depending on having successfully completed its commissioning for regas operations in Germany, it said.

“We are very pleased with securing an attractive, long-term financing for these two FSRUs with a strong group of international banks,” Hoegh LNG’s finance chief Havard Furu said in the statement.

Hoegh LNG signed binding 10-year charter deals with the German Federal Ministry for Economic Affairs and Climate Action for these two FSRUs.

The 170,000-cbm FSRU Hoegh Esperanza is already serving Germany’s first FSRU-based LNG import facility in Wilhelmshaven, led by Uniper.

As per the 170,000-cbm FSRU Hoegh Gannet, this unit arrived in Brunsbuettel in January to start serving the Elbehafen LNG terminal.

RWE moved the unit in the meantime and is expecting the FSRU to receive its first LNG cargo this month.

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