On 17 June 2016, as part of the 20th International Economic Forum in Saint Petersburg, PAO Sovcomflot (“SCF Group”) and VTB Bank signed a USD 260 million 13-year loan agreement. The signatories were Sergey Frank, President and CEO of PAO Sovcomflot, and Andrey Kostin, President and Chairman of the Management Board of VTB Bank.
The agreement provides for the financing of construction of an Arctic LNG tanker for the Yamal LNG project. The new tanker will be able to carry up to 172,600 cubic metres of liquefied natural gas (LNG) and has an Arc7 enhanced ice class, enabling independent navigation in ice fields of up to 2.1 metres thick. The vessel will have a 45 MW propulsion system, which is comparable to that of the nuclear ice breakers. The vessel is due to be delivered in the first quarter of 2017.
Sovcomflot’s CEO Sergey Frank said: “We are delighted to expand our cooperation with VTB, our long-standing partner and one of the Russian banking market leaders. We are completing the construction of an innovative vessel, which has no analogues in the world to date, and we have concluded a unique transaction to finance this project. This is one of the first such agreements ever signed in Russia, to finance a vessel construction, which is traditionally a very capital-intensive and long-term investment project. I am confident that the solid performance delivered by our company will enable it to continue to be a reliable and attractive partner for Russian banks.”
“VTB Bank always takes part in innovative and high-tech projects with great interest. The loan to Sovcomflot, Russia’s largest shipping company, will be used to build a unique new ice-resistant LNG tanker for the Russian Arctic. I’m confident it will help Russia further develop this harsh territory,” said Andrei Kostin, President and Chairman of VTB Bank Management Board.