Greek LNG shipping firm GasLog has signed a new five-year sustainability-linked credit facility in the amount of $2.8 billion. The firm also secured new charter deals for its LNG carriers.
The Peter Livanos-led company, which earlier this year completed its merger with GasLog Partners, revealed these deals in its third-quarter report issued on Thursday.
According to GasLog, the senior secured reducing revolving credit facility includes decarbonization and social key performance targets as a component of the facility pricing.
This financing involves 14 international banks.
The facility refinances all outstanding debt of $2.1 billion secured by 23 LNG carriers across both GasLog and GasLog Partners, it said.
Moreover, the 23 LNG carriers (12 GasLog vessels and 11 GasLog Partners vessels) included in the facility are comprised of ten dual-fuel two-stroke engine propulsion (X-DF) LNG carriers, ten TFDE LNG carriers, and three steam LNG carriers.
The facility has a five-year tenor, includes two one-year extension options and simplifies GasLog’s debt structure, providing incremental available liquidity to the company while reducing interest cost and debt service requirements, the firm said.
GasLog said the transaction was completed on November 13, with the company drawing down an amount of $2.1 billion and $672 million remaining available for general corporate purposes.
New charter deals
Beside this financing deal, GasLog secured new charter deals for its LNG carriers.
During the third quarter, GasLog Partners signed a multi-year time charter agreement for the steam LNG carrier, Methane Rita Andrea, with an “Asian LNG buyer”.
The charter for the 2006-built 145,000-cbm LNG carrier will expire in March 2026, according to GasLog.
Post-quarter end, GasLog extended by five years the time charter agreement of the TFDE LNG carrier, GasLog Singapore, with New Fortress Energy Transport Partners.
This charter now will last until June 2030.
Earlier this year GasLog and NFE extended the charter deal for the 2010-built 155,000-cbm, GasLog Singapore, for about two years.
In addition to this LNG carrier, GasLog Partners signed a multi-year time charter agreement for the TFDE LNG carrier GasLog Santiago, with a “major energy exploration company”, it said.
The 2013-built 155,000-cbm vessel is now chartered to Trafigura Maritime Logistic and the charter expires in December this year.
