NAT Secures Financing for Suezmax Newbuilds

Nordic American Tankers (NAT) told investors on Friday that it has lined up full financing for two new tankers on order from South Korea's Samsung Heavy Industries. The newbuilds are the first to be ordered by NAT since 2016.

The shipowner said it entered into a financing agreement with a subsidiary of Ocean Yield ASA for the Suezmax pair, which are due for delivery in the first half of 2022. 

"It is an advantage to secure the long term financing for these two newbuildings at an early stage and with an existing lender," NAT said, adding it aims to become a debt free company.

The financing is for up to 80% of the newbuilding price, and the agreements are based on a 10-year bareboat charter for each vessel. NAT said it has certain options to buy or sell the vessels during the charter period.

The two new tankers will grow NAT's Suezmax fleet to 25 vessels.