Höegh LNG finds financing for FSRU

Höegh LNG's Höegh Grace FSRU
Höegh LNG’s Höegh Grace FSRU

Höegh LNG has received commitment letters for a US$177 million debt financing for a ninth FSRU.

The facility comprises a 12-year tranche of US$132 million guaranteed by K-SURE, a South Korean export credit agency, and a five-year non-amortising commercial bank tranche of US$45 million.

A combination of existing and new lenders is participating in the facility.

The facility is available to fund 65 per cent of the delivered cost of the FSRU based on a 16-year blended amortisation profile.

Höegh LNG intends to fix the interest rate and based on the current swap rate, the fixed interest rate is expected to be around five per cent. The facility is subject to final documentation.

The 170,000m3 FSRU is currently under construction at Hyundai Heavy Industries.

The vessel is scheduled to be delivered in the fourth quarter of 2018.