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Sovcomflot Pioneers Financing Incorporating Poseidon Principles for LNG vessels

Logistic News - Published on Thu, 19 Sep 2019

Image Source: http://sovcomflot.ru
Joint venture companies belonging to Sovcomflot and NYK Line have signed a new USD 176 million non-recourse credit facility for eight years with three leading international banks: Sumitomo Mitsui Banking Corporation of Japan (through its German subsidiary, SMBC Bank EU AG); Societe Generale of France, and Shinsei Bank of Japan. The facility will be used towards refinancing two ice-class LNG carriers servicing the Sakhalin-2 project, Grand Aniva and her sister ship Grand Elena, which are jointly owned and operated by SCF Group and NYK Line. The vessels transport LNG year-round from the port of Prigorodnoye on Sakhalin Island to customers in Japan, South Korea and China under long-term contracts with Sakhalin Energy, the operator of Sakhalin-2 project. Since LNG shipments began from Sakhalin-2 in March 2009, the two carriers have successfully completed 325 voyages, delivering over 46.5 million cubic metres of LNG to customers.

Grand Aniva (built in 2008) and Grand Elena (built in 2007) each have a cargo capacity of 145,000 cubic metres. The vessels are assigned an ice class of 1C, allowing them to safely operate in challenging ice conditions of the Sea of Okhotsk year-round.

With this financing facility, SCF Group is pioneering the adoption of provisions that enable lenders to comply with the Poseidon Principles – an environmental initiative by leading international banks that promotes a low carbon future for the global shipping industry by establishing a framework for assessing and disclosing the climate change impact of ship finance portfolios. The Poseidon Principles are consistent with the International Maritime Organisation’s (IMO) ambition to reduce shipping’s greenhouse gas emissions by at least 50 per cent by 2050.

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Posted By : Mohan Sharma on Thu, 19 Sep 2019
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