LNG Ship at Sea

WFW advises Nordea Bank Norge ASA on a US$866m facility to the BW Group and secured on 8 LNG carriers

5 December 2013

Watson, Farley & Williams (“WFW”), practicing in Hong Kong in association with Lau, Leong & Co., is pleased to announce that it has advised Nordea Bank Norge ASA as Facility Agent for a syndicate of 14 lenders on the provision of a US$866,070,430 facility to the BW Group to refinance eight LNG carriers on an limited recourse basis. Nordea Bank Norge ASA is part of the largest financial services group in Northern Europe and is active in the shipping and offshore arenas, and the syndicate members comprised leading banks across Europe and Asia.

The eight LNG vessels are registered in Bermuda and are long term time chartered to Nigeria LNG Limited. The financing involved detailed and complex negotiations on the financing and security documents between BW Group and the syndicate of lenders; and between, BW Group, the syndicate of lenders, Nigeria LNG Limited and its financiers in relation to the terms on which the mortgagees’ and charterers’ rights would be recognized vis-a-vis the vessels. Head of WFW Hong Kong Madeline Leong led the team, and was assisted by associates Jonathan Keats and Siavush Mokhtar.

Madeline Leong, sector partner at WFW in Hong Kong, said: “This deal was challenging for all parties and drew on WFW’s legal experience and expertise in the oil and gas/energy sector. The size of the financing demonstrates that lenders are very keen to lend to and support significant players like BW Group in the LNG sector.”