BW LPG Limited (“BW LPG”, the “Company”, OSE ticker code: “BWLPG”) announced today that it has signed a Facility Agreement for a debt facility of up to USD400 million for financing seven of its VLGC newbuildings.

The financing has been raised from The Export-Import Bank of Korea (“KEXIM”) as Export Credit Agency (ECA) lender, with DNB Asia Limited (“DNB”) and Skandinaviska Enskilda Banken AB (Publ), Singapore Branch, (“SEB”) as Mandated Lead Arrangers and commercial lenders.

DNB and HSBC Bank Plc. (“HSBC”) acted as ECA structuring advisors with HSBC also acting as ECA coordinator.

BW LPG Chief Executive Officer, Nicholas Gleeson, commenting on the financing said, “We are very pleased with this financing, which leverages the well-priced Korean ECA lending to provide an exceptional all-in cost and structure.”

The Facility comprises the following:

An ECA tranche of up to USD268 million that is being provided by KEXIM, representing approximately 67% of the facility amount.

A Commercial tranche of up to USD133 million, split equally between the two commercial lenders, representing approximately 33% of the facility amount.

The debt financing will be secured against seven of the Company’s VLGC newbuildings. The blended margin over LIBOR applicable across all tranches of the financing is 1.70% p.a., and the weighted average amortisation profile will be 18 years.

Vijay Kamath, BW LPG Chief Financial Officer, added, “This facility, we believe, is a market leading financing in terms of pricing, tenor and structure and reflects the strong continued support that the Company enjoys from its banks and the lending community. This facility is a culmination of a substantial effort from our team and also the Banks and financial institutions involved, to all of whom we would like to express our sincere gratitude.”

The covenants applied to this financing programme are the same that have been applicable in BW LPG’s previous financing transaction of USD700 million facility (outlined on page 125 of our IPO prospectus).

This Facility also contains the change of control provision (consistent with the US$700m IPO financing) that if Sohmen family interests cease to hold more than 50% in BW Group; BW Group ceases to hold more than 35% in the Company; or another person or entity than BW Group acquires more than 50% in the Company; the Facility must be cancelled and repaid in full.

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