DHT Holdings Announces $50 Million Scrubber Financing
DHT Holdings, Inc. has announced that it has secured commitment to a $50 million financing for its earlier publicized scrubber retrofit project, subject to final documentation. The financing is structured through an increase of the existing $300 million secured credit facility entered into in the second quarter of 2017.
The increased facility will bear the same interest rate equal to Libor + 2.40 percent. The increased facility is available immediately and will have quarterly repayments of $2.5 million commencing second quarter 2020, aligned with the implementation of IMO2020 and expected economic benefits. Other terms and conditions remain unchanged.
All seven banks in the existing facility, participated in the increased facility: Nordea, ABN Amro, Danish Ship Finance, DNB, ING, SEB and Swedbank.
The co-CEOs Svein Moxnes Harfjeld and Trygve P. Munthe said: "We are very pleased with the solid support from our banking universe in financing this attractive investment for DHT. We have obtained competitive terms with a structure tailored to the execution of the project."
In July, DHT Holdings announced that it has entered into agreements to install scrubbers on 12 of its VLCCs. The company has entered into agreement with Alfa Laval to supply the systems and has also secured shipyard capacity to install all systems within 2019. The systems will be installed on ships built between 2012 and 2004, the part of the fleet that stands to achieve the greatest economic benefit. These 12 systems will come in addition to the two systems being installed on the newbuildings DHT Bronco and DHT Mustang set for delivery later this quarter from Hyundai Heavy Industries. As such, DHT will have 14 VLCCs fitted with scrubbers when the IMO sulfhur cap will be implemented January 1, 2020.
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