DHT finances four

Expanding DHT Holdings has brought in three new banks to fund four of its VLCC newbuildings ordered at Hyundai Heavy Industries.

The financing equals about 50% of the contract prices, with an average margin above the London inter-bank rate (Libor) of 2.5%.

The deal sees its first loans from ABN Amro, Nordea and Danish Ship Finance.

Assuming Libor of 0.25%, it will pay $11,000 per ship per day in interest and instalments in the first year.

DHT said it was “experiencing strong interest and support from the ship lending community.”

“The banks appreciate our focus on moderate leverage and cash break-even levels and have responded with competitive pricing and terms,” it added.

The NYSE-listed shipowner has six VLCCs on order at Hyundai with deliveries now spread between November 2015 and October 2016.

It is paying $98.8m for the first pair, $92.7m for the next three and $97.3m for the sixth and final ship. All the prices include $2.3m in additions and upgrades to the standard specification.