LNG ship docked at dusk

Petredec beneficiaries of US$186m financing from WFW-advised KfW IPEX-Bank

29 June 2015

Watson Farley & Williams (“WFW”) has advised KfW IPEX-Bank on a US$186.3m financing for Petredec Limited, to help finance the construction of four new handysize gas carriers, which may transport liquefied petroleum gas (LPG), ethane, ethylene or selected petrochemicals. One tranche, in the US dollar equivalent amount of €50.4m, of the total financing is backed by German export credit agency Euler Hermes. It will be disbursed via a complex financing structure to fund the construction of the German-built gas storage and transport systems which will eventually be installed on the four vessels.

The vessels themselves will be constructed at the Jiangnan Shipyard in Shanghai, China and fly the Singaporean flag.

KfW IPEX-Bank is a subsidiary of KfW and is active in the project finance and export finance markets for transport and infrastructure. Petredec is a global company that buys, sells, transports, stores and distributes LPG, and operates one of the largest LPG fleets in the world, with over 50 vessels.

The cross-border WFW team was led by London partner and Global Head of the WFW Maritime sector group Lindsey Keeble. She was supported by Maritime senior associate Patrick Smith and associate Joanna Goode. Partner Chien Herr Lee and associate James Teo of Asia Practice in Singapore advised on the Singapore law aspects of the transaction.

Lead partner Lindsey Keeble said: “KfW IPEX-Bank is a long-standing time client of the firm. We are pleased to have been able to assist them on this complex, cross-border, ECA backed deal which is significant for both KfW IPEX-Bank and Petredec, and a further vote of industry confidence in the LPG tanker market.”