China Bank Supports Hoegh LNG for New FRSU
Hoegh LNG on its first ever sale and leaseback deal with China Construction Bank Financial Leasing (CCBFL) for its tenth Floating Storage Regasification Unit (FSRU), the Hoegh Galleon, which was delivered yesterday (August 27) and has been taken back on charter by Hoegh LNG for twelve years.
Following the completion of the transaction, Hoegh LNG is now fully funded with both equity and debt for its current newbuilding program, which will be completed with the delivery of Hoegh Galleon in August 2019.
The Hoegh Galleon has been employed on an 18-months interim LNGC time charter with Cheniere before its intended long-term charter with AIE in Australia, according to Watson Farley & Williams, which was the advisor for the deal.
Hoegh LNG, the only FSRU operator with operations in China via its contract with energy giant CNOOC, is also to set up a representative office in Shanghai as part of its expansion plans in that country.
Oslo-based Höegh LNG is a leading worldwide owner and operator of floating LNG import terminals and FSRUs, and one of the most experienced global operators of LNG Carriers. It is comprised of Höegh LNG Holdings and Höegh LNG Partners.
The WFW London team advising Hoegh LNG was led by Partner and Global Maritime Sector Head Lindsey Keeble, supported by Senior Associate Kate Silverstein and Associate Parit Patani.
Lindsey said: “We’re delighted to have advised long-standing client Hoegh LNG once again on an important FSRU transaction, especially one that marks the beginning of an important relationship with China. That they chose WFW to do so not only emphasizes our standing as the world’s leading maritime finance legal practice, but also our expertise in the critical and fast expanding LNG and offshore sectors in particular”.