Bermuda-based crude oil tanker company DHT Holdings, Inc. (DHT) 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%. The increased facility is available immediately and will have quarterly repayments of $2.5 million commencing from the second quarter of 2020, in line with the implementation of IMO 2020 sulphur cap and expected economic benefits.
The project encompasses twelve of its very large crude carriers (VLCCs), under a contract with Swedish Alfa Laval for the supply of scrubbers within 2019.
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.
This comes at a time when global financing institutions and banks seem to show a shift towards green financing to align with a general awareness and sensibilization around the devastating impacts of climate change.
