A Dorian LPG newbuilding is launched at Hyundai Heavy.
Dorian LPG is understood to be closing in on bank financing for its vast very large gas carrier (VLGC) newbuilding programme after securing export credit backing over Christmas.
A consortium of at least three European banks has stepped up with a package for the world’s second largest VLCG player, well-placed sources indicate.
Dorian has previously stated its confidence in finding money for a newbuilding programme worth $1.36bn.
The first part of the package being organised by Citi was secured over the festive break with Korea Export-Import Bank (Kexim Bank) and the Korean Trade Insurance Corp (K-Sure) providing the company with its first export credit backing.
Kexim is providing $400m and K-Sure a further $100m, with final terms likely to be in place in February
This will soon be followed by bank debt, with ABN Amro and ING believed to be part of the consortium alongside at least one other European lender that has yet to be identified.
Sources close to the deal confirm a loan will soon be secured but the terms have not yet emerged.
As TradeWinds reported in November, Dorian was confident of securing the $750m funding required for the ships, despite some concerns in the market at that stage.
“We didn’t need the money until now and we don’t need it until the first quarter,” said chief executive John Hadjipateras on the company’s third quarter conference call.
“We feel we can take the time to negotiate the best structure that’s out there. We have agreed to terms with the commercial banks and we’re in discussion with the export agency in Korea.”
Dorian has a fleet of six VLGCs on the water following the delivery of the 84,000-cmb Corvette from Hyundai Heavy Industries in the first week of the New Year. Four are trading in the strong spot market. It has 16 further newbuildings under construction.
Despite market fears that the size of the VLGC orderbook was deterring some banks, loans are clearly there for owners in the sector.
As TradeWinds online reported this week, Oslo-listed Avance Gas has completed the funding of its own newbuilding programme.
Nordea, DNB, Danske Bank, ABN Amro and KfW IPEX-Bank stepped up with a$200m facility to pay for the final four ships in its series at Jiangnan Changxing Heavy Industry.
