BW LPG India secures $215 million loan to refinance debt and fund purchase of two VLGCs

Time of India

25-07-2025

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MUMBAI: BW LPG India , the Indian unit of Oslo and New York-listed BW LPG Ltd, the world's top owner and operator of LPG vessels, including Very Large Gas Carriers ( VLGC ), has secured a $215 million term loan to refinance existing debt and support the acquisition of two modern VLGCs as part of a plan to renew fleet on the back of growing demand for cooking gas.The $215 million loan was finalised with a significantly improved margin compared to the previous facility, BW LPG India said, adding that it received strong backing from five banks' lending through their branches in the Gujarat International Finance Tec-City (GIFT City), helping the fleet owner cut overall financing costs and also benefit from the withholding tax exemptions on interest payments, it said.'This reaffirms the robust and ongoing support of our global banking network and enhances our liquidity through dynamic markets ahead of us,' said Kristian Sorensen, CEO of BW LPG.On March 31, BW LPG Ltd said it has signed a Memorandum of Agreement (MOA) with BW LPG India to sell two vessels acquired in the recent Avance Gas transaction – ' BW Pampero ' and ' BW Chinook ' to BW LPG India at a price of about $75 million per vessel. The delivery of the two vessels is expected in Q3 2025.BW LPG India currently owns and operates India's largest fleet of VLGCs. Following the acquisition of these two vessels, BW LPG India will own nine VLGCs.The transaction will renew and grow the fleet and further enlarge BW LPG India's footprint. Taking over two vessels built in 2015 will not only result in fleet expansion but also in fleet renewal which comes at an opportune time with continued growth in India's LPG demand, the Company said.BW LPG India's fleet is Indian-flagged and Indian-operated to facilitate business transactions in alignment with the Atma Nirbhar Bharat scheme. It is the youngest and largest fleet in India, accounting for imports of approximately 20 per cent of LPG into India.BW LPG India was established as a joint venture in 2017 between BW LPG Ltd and Global United Shipping based in Chennai. In 2021, Maas Capital Shipping B.V. acquired a minority stake of 42 per cent in BW LPG India, with BW LPG currently holding 52 per cent of the shares.'With 'BW Pampero' and 'BW Chinook' we are adding modern quality tonnage and more capacity to our Indian-flagged fleet. We see tremendous potential in the country and are proud to participate in the continued growth of the Indian LPG market,' Sorensen said.The transaction of 'BW Pampero' and 'BW Chinook' reflects BW LPG's strategy to right-size and renew its fleet in growing markets. BW LPG leverages on its strong commercial platform and continues to grow its Indian fleet to support the country's energy transition while weathering any geopolitical uncertainties, the Company said.The two ships will be the youngest VLGCs under the Indian flag.'We look forward to long term cargo support from Indian oil marketing companies and extension of subsidy support scheme beyond 2026 for Indian flag ships. The government should remove the 5 per cent IGST on import of ships. Further, the government should consider removal of income tax on Indian crew wages, making it a level playing field for Indian ship owner's vis a vis foreign flag ships,' a BW LPG India official said.