Norway’s Awilco LNG ASA announced the term sheet for refinancing its two 2013-built LNG carriers WilForce and WilPride has been credit approved
China’s CCB Financial Leasing Co, a subsidiary of China Construction Bank, is providing the sale and lease back facility and is expected to enable a full take out of the company’s current financing scheme at favourable terms.
Expected to close in Q4, the facility bears a 14-year straight line amortisation profile, a tenor of 10 years and carries a floating interest rate structure.
Awilco LNG chief executive Jon Skule Storheill said the terms were “attractive and supportive of the company’s commercial strategy.”
Built by South Korea’s Daewoo Shipbuilding & Marine Engineering, each of the LNG carriers has a capacity of 156,000 m3 and an efficient tri-fuel diesel-electric (TFDE)propulsion system. In TFDE propulsion, there are no main diesel engines, but rather electric motors, minimising space requirements, while increasing cargo carrying capacity and lowering maintenance.
At the end of May, WilForce was sent to a shipyard in Singapore for repairs following a collision with Nissin Shipping’s 2019-built bulk carrier Western Moscow. WilForce suffered hull damage and no harm to life or environment, reported Awilco LNG. At the time of collision, WilForce was employed on a nine- to 12-month time charter contract which commenced in September 2018. The charterer notified Awilco LNG of its decision to cancel the remaining period of the time charter contract due to the prolonged off-hire period required to repair the vessel as provided for in the charter party terms.
Sister vessel WilPride is under charter to an oil major for eight months.