Hafnia Tankers bags major savings with new loan

Refinancing loans with a broad group of shipping banks has secured Hafnia Tankers significantly better credit terms in the years ahead of 2023. Market sources tell ShippingWatch the scope of the savings.

A new credit facility for a total USD 360 million gives Hafnia Tankers significantly better lending terms in the years ahead of 2023, and the carrier thus also bags major savings.

The new credit facility is backed by a series of renowned shipping banks, namely ABN AMRO, Danish Ship Finance, Danske Bank, ING Bank, BNP Paribas, Nordea, Skandinaviska Enskilda Banken (SEB) and Swedbank.

Interest on the new facility corresponds to the Libor rate plus 2.25 percent. According to information from several market sources, the new credit facility brings major savings to the Danish carrier, as the previous loan - according to sources - came with a Libor plus 3.25 percent interest rate. The previous loan totaled USD 340 million.

However, Hafnia Tankers CEO Mikael Skov declines to confirm this to ShippingWatch. He will only confirm that the new facility represents "a significant improvement" reflected in the interest costs as well as a cash injection.

He adds that the new credit facility does come with plans for a fleet expansion.

Hafnia Tankers operates in the product tanker segment, a sector that - unlike dry bulk in particular but also container - is doing very well right now. The low oil price, which is directly or indirectly putting pressure on most of the shipping industry, has led to a boom in both crude oil and product transports - a trend that looks set to continue in 2016.

Hafnia Tankers will publish its 2015 annual report on March 11th.

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