The tanker owner Hafnia has signed a $715m revolving credit facility on Thursday secured by a modern fleet of 32 product tankers.

The facility, established in partnership with a syndicate of 11 banks, has a very competitive margin with a tenor of seven years and an age-adjusted amortisation profile of 20 years, according to Hafnia.

It has also an uncommitted accordion tranche of up to $417m to be exercised within two years. 

“By refinancing existing debt with this Loan Facility, Hafnia has lowered its overall cost of funding, reduced the cash flow breakeven, strengthened its liquidity profile and built in flexibility to position itself for future growth,” the company said in a statement.

The syndicate comprises of ING, OCBC, and Standard Chartered as the mandated lead arrangers; BNP Paribas, DBS Bank Ltd., IYO Bank, Societe Generale and UOB as the lead arrangers; E.Sun Commercial Bank Ltd., Singapore Branch, Skandinaviska Enskilda Banken AB (publ) and Taishin International Bank, Singapore Branch, as co-arrangers.

ING served as the facility coordinator and facility agent for the transaction.

“This facility is a testament to the confidence our banking partners have in Hafnia’s strategy and performance. The lower cost, attractive terms and revolving nature of the facility gives us the agility to manage our liquidity needs and enhance our financial flexibility,” pointed out Hafnia’s CFO Perry van Echtelt.