Sovcomflot Secures $260m Loan for Icebreaking LNG Carrier
On June 17, 2016, as part of the Twentieth International Economic Forum in Saint Petersburg, PAO Sovcomflot (“SCF Group”) and VTB Bank signed a $260 million 13-year loan agreement. The signatories were Sergey Frank, President and CEO of PAO Sovcomflot, and Andrey Kostin, President and Chairman of the Management Board of VTB Bank.
The agreement provides for the financing of construction of an Arctic LNG tanker for the Yamal LNG project. The new tanker will be able to carry up to 172,600 cubic metres of liquefied natural gas (LNG) and has an Arc7 enhanced ice class, enabling independent navigation in ice fields of up to 2.1 metres thick. The vessel will have a 45 MW propulsion system, which is comparable to that of the nuclear ice breakers. The vessel is due to be delivered in the first quarter of 2017.
Sovcomflot’s CEO Sergey Frank said: “We are delighted to expand our cooperation with VTB, our long-standing partner and one of the Russian banking market leaders. We are completing the construction of an innovative vessel, which has no analogues in the world to date, and we have concluded a unique transaction to finance this project. This is one of the first such agreements ever signed in Russia, to finance a vessel construction, which is traditionally a very capital-intensive and long-term investment project. I am confident that the solid performance delivered by our company will enable it to continue to be a reliable and attractive partner for Russian banks.”
“VTB Bank always takes part in innovative and high-tech projects with great interest. The loan to Sovcomflot, Russia’s largest shipping company, will be used to build a unique new ice-resistant LNG tanker for the Russian Arctic. I’m confident it will help Russia further develop this harsh territory,” said Andrei Kostin, President and Chairman of VTB Bank Management Board.
PAO Sovcomflot (SCF Group of companies) is one of the world's leading shipping companies, specialising in the transportation of crude oil, petroleum products, and liquefied gas. The Group’s fleet comprises 140 vessels with a total deadweight of over 12.2 million tonnes. The company is registered in St. Petersburg with offices in Moscow, Novorossiysk, Murmansk, Vladivostok, Yuzhno-Sakhalinsk, London, Limassol, and Dubai.
The Group offers a wide range of vessels in the market segments most demanded by major Russian oil and gas companies. With its own technical development and unique approach to advanced technologies, Sovcomflot has the ability to meet the most demanding customer requirements, providing effective transportation for oil & gas companies. For more information, please visit ww.scf-group.ru.
JSC VTB Bank, its subsidiary banks and financial organisations (VTB Group or the Group) comprise a leading Russian financial group, offering a wide range of financial and banking services and products in Russia, the CIS, and select countries of Europe, North America, Asia, and Africa. The Group operates in Russia through the parent company VTB Bank and its five subsidiary banks. VTB Group’s largest subsidiary bank in Russia is VTB24. Its subsidiary financial organisations offer insurance, leasing, factoring, and other financial services, as well as services on the stock market. VTB Group has the most extensive international network of any Russian bank, with more than 30 banks and financial companies in more than 20 countries. As of 30 April 2016, the Group was the second largest financial group in Russia by assets (RUB 12.3 trillion) and by customer accounts (RUB 7.82 trillion). The Government of the Russian Federation is VTB Group’s main shareholder and owns 60.9 per cent of the voting shares through the Federal Property Management Agency.
For more information please visit www.vtb.com
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