Key Facts
- Financing amount
- $121,800,000
- Loan tenor
- Six years post-delivery
- Interest rate
- SOFR plus 1.35%
- Vessel capacity
- 51,350 cubic metres each
- Expected delivery
- May 2028 and September 2028
- Shipbuilder
- Nantong CIMC Sinopacific Offshore & Engineering Co., Ltd.
Background
Navigator Holdings Ltd., described as the owner and operator of the world’s largest fleet of handysize liquefied gas carriers, has announced the signing of a financing agreement for two newbuild ammonia carriers. The vessels are being built for Navigator Amon Shipping AS, a joint venture with Amon Maritime.
The two vessels, each with a capacity of 51,350 cubic metres, will be ammonia-fuelled and capable of carrying liquefied petroleum gas. They are currently under construction in China, under shipbuilding contracts entered into in July 2025 with Nantong CIMC Sinopacific Offshore & Engineering Co., Ltd.
Current Situation
On July 31, 2026, subsidiaries of Navigator Amon Shipping AS entered into a senior secured post-delivery term loan agreement with ING Bank N.V., London Branch, Société Générale and Oversea-Chinese Banking Corporation Limited. The facility provides up to $121,800,000 to finance up to 70% of the cost of the two vessels at delivery.
The loan has a post-delivery tenor of six years and is secured by, among other things, mortgages over the newbuild vessels. Amounts outstanding will bear interest at SOFR plus 1.35%, payable quarterly. The obligations are guaranteed by the Company and Navigator Amon Shipping AS, and the agreement contains certain conditions, covenants and events of default.
Delivery of the two vessels is expected in May 2028 and September 2028. All pre-delivery payments and the remaining portion of the delivery instalments will be funded from the cash resources of the Borrowers, provided by the shareholders of Navigator Amon Shipping AS.
| Item | Detail |
|---|---|
| Financing amount | $121,800,000 |
| Percentage of cost financed | Up to 70% |
| Vessel capacity | 51,350 cubic metres each |
| Expected delivery | May 2028 and September 2028 |
| Loan tenor | Six years post-delivery |
| Interest rate | SOFR plus 1.35% |
Impacts
The financing supports Navigator Gas’s ammonia growth strategy, converting it into a fully financed, commercially contracted investment. According to Gary Chapman, Chief Financial Officer, securing six-year post-delivery debt at an attractive margin from a high-quality banking group supports disciplined capital allocation and preserves balance sheet flexibility.
The vessels are designed to participate in both today’s LPG and ammonia trades and the emerging market for ammonia as a marine fuel. This positions Navigator and Navigator Amon to create durable value for customers and shareholders, as stated by Chapman.
The construction in China and the involvement of international lenders highlight the global nature of the project. The exact impact on shipyard employment or regional trade flows remains unclear from the supplied information.
Future Outlook
Scenario analysis: The possibilities below are not certain predictions.
If the vessels are delivered as scheduled in May and September 2028, they could enter service in the ammonia and LPG trades, potentially strengthening Navigator’s fleet capabilities. The financing may also enable the company to pursue further growth opportunities in ammonia transportation.
Should the emerging market for ammonia as a marine fuel develop as anticipated, these vessels could benefit from increased demand. However, if market conditions change or construction delays occur, the delivery timeline and financial performance may be affected.
The success of this investment will depend on long-term customer demand for safe and efficient ammonia transportation, as well as the competitive financing terms secured. The company believes the combination of contracted employment, competitive financing, and future-facing vessel capability positions it well, but actual outcomes remain uncertain.
Source: hellenicshippingnews.com
