Shipping Telegraph BW LPG closes $595m financing with 10 banks to support fleet, debt, liquidity

VLGC shipowner and operator BW LPG has closed two key financing facilities to support the company’s fleet expansion, to refinance existing debt, and to boost liquidity.

BW LPG with more than 50 very large gas carriers (VLGCs) has secured two financing facilities totaling $595m, aimed at supporting the fleet renewal of its Indian subsidiary, improving its overall funding cost and liquidity profile, and enabling the company to finance the finalised acquisition of Avance Gas fleet.

As disclosed, the company -which is associated with BW Group- has closed a $380m term loan and revolving credit facility, which is backed by seven banking partners. This deal is expected to help BW LPG to finance the vessels acquired from Avance Gas, completed in late 2024.

As a result of this development, BW LPG said that it terminated its shareholder loan of $250m in June 2025, ahead of its expiry.

Separately, BW LPG India has secured a $215m term loan facility to refinance its existing debt and to support the acquisition of two modern VLGCs, BW Chinook and BW Pampero, from BW LPG.

Earlier this year, BW LPG Limited signed a memorandum of agreement 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 approximately $75m per vessel to ensure further expansion and fleet renewal in the Indian market.

BW LPG India, a subsidiary participated by Maas Capital Shipping and Global United Shipping, currently owns and operates a large fleet of VLGCs. Following the acquisition of these two VLGCs, BW LPG India will own nine VLGCs.

The $215m loan was closed with a significantly improved margin compared to the previous facility, BW LPG said.

“It received strong backing from our five banking partners lending through their branches in Gujarat International Finance Tec-City (GIFT), India, enabling an overall financing costs reduction including benefit from withholding tax exemptions on interest payments,” the company added.

The facilities drew support across ten banks including Citibank N.A., DBS Bank Ltd., Development Bank of Japan Inc., DNB Bank ASA, ING, Mizuho Bank, Ltd., MUFG Bank, Ltd., OCBC, Skandinaviska Enskilda Banken AB (publ) and Standard Chartered.