Sovcomflot Gets Cash for LNG Carrier Newbuilds

OAO Sovcomflot (SCF Group) announced today the signing of a new USD $319 million, 10 year credit facility which the company says will be used to finance two new ice-class LNG carriers under construction at STX Shipbuilding.

The two ships are the SCF Melampus and SCF Mitre, which will operate on long-term contracts with the Shell Group once delivered in December 2014 and April 2015, respectively.

About the vessels:

The new high-spec Atlanticmax Ice2 (1C) class gas carriers are 299.9 meters in length and feature a tri-fuel engine, a cargo capacity of 170,000m³ and are equipped for operating in harsh and low temperature conditions which will allow them to transport LNG year-round to and from most of the world’s existing LNG terminals. Both vessels are Liberian flagged and classed by Lloyd’s Register and Russian Maritime Register.

Nikolai Kolesnikov, Senior Executive Vice-President & Chief Financial Officer, said:

“We are delighted to have concluded a new long-term international financing agreement for SCF Group. This deal represents a major milestone for the company in 2014 and serves to demonstrate its continued access to the international financial markets. In the course of the last one and a half year SCF has arranged long-term bank financing in a total amount of over USD 700 million for its growing liquefied gas transportation business. This limited-recourse financing will further strengthen the Group’s liquidity position and enable it to address upcoming financial requirements. The major European banks participating in the deal have long-standing relations with SCF Group, and we value and appreciate their continued support and specialist expertise.”