LNG Ship at Sea

WFW Asia Practice advises Brunei Gas Carriers Sdn Bhd to secure US$183m secured Islamic finance facility for acquisition of 5th Newbuild LNG vessel

9 January 2013

The Singapore office of Watson, Farley & Williams LLP (“WFW”), a leading international law firm, is pleased to announce that it advised Brunei Gas Carriers Sdn Bhd (“BGC”) in relation to the raising of US$183,644,000 to fund the acquisition of BGC’s 5th Newbuild LNG vessel to be chartered under a long term charter to Brunei LNG Sdn Bhd. WFW also advised BGC in relation to the shipbuilding contract, shipping services agreements, depot spares agreement and charter documents for the newbuild LNG vessel. BGC, incorporated in Brunei Darussalam and a well-established, reputable LNG vessel owner, has arranged a long-term Islamic financing facility of up to US$ 183,644,000 with a syndicate of financiers consisting of Bank Islam Brunei Darussalam Berhad, Bank of Tokyo-Mitsubishi UFJ (Malaysia) Berhad, The Hongkong and Shanghai Banking Corporation Limited and Sumitomo Mitsui Banking Corporation Europe Limited. The above facility is centered around an Istisna – Ijara structure. The transaction was led by partner Simon Petch who was assisted by associates Shawn Er and Jesse Clark and trainee solicitor Su Lin Khor. Shahbudin Musa, Hui Ling Koh, Joe Chan, Calvin Chiew and Siti Fatimah of BGC acted on this transaction. Shahbudin Musa, MD of BGC said: “It was wonderful to close out this project together with WFW alongside us. This is our 2nd project of 2012 where Islamic financing was used and closing it in a timely manner was a very satisfying achievement. We’re honoured to be a part of this project and believe it to be a great model with an ever growing potential in Brunei.” WFW partner Simon Petch said: “We were delighted to work with BGC again on the financing of its 5th LNG vessel. Our involvement in this transaction represents our further continued commitment to BGC.”