With this move, the ex-Aurora fleet is fully refinanced “at similar competitive terms and structure as the rest of the BW LPG fleet,” according to MANA cited by the company.
“This financing exemplifies our strategy of cost leadership, and our ability to leverage the BW LPG platform value in obtaining market leading financing,” Martin Ackermann, BW LPG Chief Executive Officer, said.
The company said that the refinancing has been raised from The Export-Import Bank of Korea (KEXIM) as export credit agency lender, with ABN AMRO Bank N.V., Singapore branch and Oversea-Chinese Banking Corporation Limited as Mandated Lead Arrangers.
In December 2016, BW LPG completed the acquisition of Aurora LPG, adding nine VLGCs with an average age of three years to its fleet. Additionally, the firm took delivery of six newbuildings and sold three vessels last year.
Affected by a slowdown in the liquefied petroleum gas (LPG) market, BW LPG saw a drop in its full-year profit after tax to USD 23.6 million in 2016 from USD 326.1 million posted in 2015.
Due to voyage expenses losses, the company’s net revenue decreased to USD 407 million in 2016 from a net revenue of USD 626.5 million seen in 2015.