Dorian LPG has secured a new $368.4m seven-year financing, consolidating four existing financing arrangements as the US-listed gas carrier owner pushes ahead with a new generation of VLGCs.

The company, led by John Hadjipateras, has arranged a $213.4m term loan and a $155.1m revolving facility, both priced at 140 basis points over SOFR. Dorian will draw $193.8m at closing, with a further $16m of revolving debt to refinance the Clermont ahead of the ship's delivery to its new owner in October. The Cresques will be added to the facility at the end of September.

The financing also includes a $200m accordion that can be drawn on for future growth, giving Dorian additional room as it replaces older tonnage with larger dual-fuel ships. The sustainability-linked structure ties the facility's terms to environmental performance criteria, an increasingly common feature in ship financing as banks align lending with decarbonization goals.

Nordea and SEB are coordinating bookrunners on an eight-bank syndicate that also includes Crédit Agricole, BNP Paribas, Danish Ship Finance, DNB Carnegie, ING and OCBC. Crédit Agricole serves as sustainability coordinator for the sustainability-linked facility.

Alongside the financing announcement, Dorian officially confirmed the Hanwha Ocean order that Splash had traced to the company earlier this month.

Dorian has now disclosed contracts for three 90,000 cu m dual-fuel panamax VLGCs at the South Korean yard for about $345m in total. The ships are scheduled for delivery in June, September and December 2030 and will be capable of burning either LPG or conventional low-sulphur fuel. Using LPG as a marine fuel reduces CO2 emissions relative to conventional fuel oil, and dual-fuel VLGC newbuildings have become the dominant choice among owners ordering in the segment in recent years.

The Hanwha trio follows a 90,000 cu m dual-fuel VLGC that Dorian ordered at HD Hyundai in June for around $115m, with delivery set for July 2029, bringing its directly announced newbuilding investment this summer to roughly $460m. South Korean yards, including Hanwha Ocean and HD Hyundai, remain the principal builders of VLGCs worldwide.

At the same time, Dorian has been capitalizing on strong secondhand values, selling the 2014-built Corsair and the 2015-built Cobra, Constellation and Clermont. The four disposals have generated more than $340m, meaning the company's fleet renewal drive is substantially funded by sales of older ships.

Dorian currently operates 25 VLGCs, including six dual-fuel eco vessels. With the 2030 delivery schedule for the Hanwha trio, the pace of the fleet turnover and any further use of the $200m accordion will be points to watch in the company's coming quarterly reports.

Source: Splash247