TORM Secures Financing for LR2 Newbuildings

TORM Danish shipping company TORM has entered into a financing agreement for four LR2 newbuildings scheduled for delivery in 2017 and 2018. The financing agreement for the 114,000 dwt vessels is for an amount of up to USD 115 million. TORM concluded the deal, which runs for twelve years, with The Export-Import Bank of China. The main conditions of the agreement are in line with the companys existing loan agreements, the Danish firm said. As of June 30, 2016, the remaining investments in TORMs newbuilding program amounted to USD 168 million. The company said that with the recent agreement, TORMs unutilized loan facilities and cash amount to USD 307 million. The four fuel-efficient LR2 newbuildings were ordered in November 2015 from the Chinese shipbuilder Guangzhou Shipyard International (GSI). The quartet has a market value of some USD 180 million, according to data provided by VesselsValue. TORM earlier said that the agreement includes the option to purchase up to six additional vessels within the LR2, LR1 or MR segment, with expected delivery in 2018 and 2019.