Sovcomflot’s financing deal for the construction of LNG carriers wins Marine Money 2014 award


A financing deal by PAO Sovcomflot (SCF Group) for the construction of two LNGC's has won the prize "Deal of the Year 2014" in “Project Financing” by the international ship finance publication Marine Money 2014. Sovcomflot’s financial deals have been recognised by Marine Money for the last five years.

The favourable terms of the signed agreement, including the project structure, long-term credit profile and attractive price, reflected the deal’s secure structure and stable cash flows, and Sovcomflot’s large credit capacity.

The Marine Money 2014 award was given to the deal with a consortium of leading European banks, with ING Bank N.V. (Netherlands) acting as the agent, to secure financing of USD 319 million over 10 years. These funds were attracted for the construction of two new ice class LNG carriers, the SCF Melampus and SCF Mitre, each with a cargo capacity of 170,000 cubic metres. One of them was entered into service at the start of 2015, while the second will join the company’s fleet in April this year. The vessels are chartered to Shell under long-term contracts.

The new high-tech Atlanticmax tankers have the ice class Ice2 (1C) and tri-fuel power generation systems, equipping them to work in harsh climatic conditions and at low temperatures. The ships’ design allows them to transport liquefied natural gas all year round from almost all LNG terminals worldwide.

In an article about the deal, Marine Money writes: “The deal was one of the company’s key events in 2014. It demonstrated the possibility for shipping companies to access international financial markets, and highlights Sovcomflot’s first-class reputation and the trust placed in it by the leading global charterers and banks, even in the current geopolitical climate”.

Nikolay Kolesnikov, PAO Sovcomflot’s Executive Vice-President and Chief Financial Officer, added: “SCF Group has longstanding relations with the leading European banks involved in this deal, and we greatly value their long-term support and professional experience”.

SCF Press Office