Petredec Global lands $315M loan for 6 dual-fuel VLGCs

Singapore-based integrated LPG company Petredec Global has secured a $ 315 million loan from a syndicate of international banks to finance six 93,000 cbm VLGCs with dual fuel LPG propulsion.

The ships are on order at Jiangnan Shipyard (Group) Co. Ltd and are expected to deliver throughout 2023 and early 2024.

The first vessel from the batch, Harzand, has been named and delivered earlier this week. the vessel has been described as the world’s largest VLGC.

The delivery of the six VLGC newbuilds will increase Petredec Global’s owned VLGC fleet to 26 and solidify its position as owner of the world’s largest and youngest VLGC fleet with an average age of 5 years.

The six VLGC newbuilds are fitted with dual fuel LPG propulsion that will emit 23% less CO2 than their conventional non-eco equivalents while also generating 25% higher spot market earnings.

“We would like to thank our banking partners for their continued support of Petredec, and to welcome two new lenders to our roster. We believe that this financing demonstrates Petredec’s ability to access competitive debt capital and our strong relationship with leading financial institutions in Europe and Asia,” John Papaioannou, CFO of Petredec Group, said.

ING Bank N.V. acted as Coordinating Bank, Bookrunner and Facility Agent for the loan.

“We are pleased to have had the opportunity to support our longstanding client Petredec in this transaction. These newbuilds feature market-leading LPG dual fuel technology which will ensure that Petredec continues to have the youngest and one of the most efficient fleets on the water,” Stephen Fewster, ING’s Global Head of Shipping Finance, added.