US-listed New Fortress Energy has secured a term loan facility of up to $725m against eight of its vessels.

The energy infrastructure company said it has made an initial borrowing of $430m from the facility which has a three-year term.

Loans issued under this will have annual interest rate equal to Libor plus 3%.

The company said the loan facility is pre-payable at par at any time without penalty.

New Fortress, which controls a fleet of LNG carriers, floating storage and regasification units (FSRUs), two under-conversion jack-up rigs and at least one offshore supply vessel, did not give details of the eight vessels that will back the loan.

New Fortress said proceeds from the shipping facility will be used to fund the development and construction of the company’s energy infrastructure projects around the world.

"This facility provides additional capital for us to build additional LNG terminals and infrastructure around the world," said company chairman and chief executive Wes Edens said.

"Our investments in LNG terminals and power infrastructure bring significant economic and environmental benefits to our expanding customer base."

Sri Lankan green light

On Tuesday, New Fortress announced that it had reached a "definitive agreement" with the Sri Lankan government to invest power plant owner West Coast Power's 310-MW Yugadanavi Power Plant in Colombo.

The deal gives New Fortress the rights to develop a new FSRU-based LNG terminal off the coast of the island state's capital city and the rights to supply gas to the Kerawalapitya Power Complex.

The terminal is expected to start operations in 2023.

Currently 310 MW of power is operational at the complex, with an additional 700 MW scheduled to be built, of which 350 MW is due to be operational by 2023.

New Fortress will acquire a 40% ownership stake in West Coast Power and will initially provide the equivalent of an estimated 1.2m gallons of LNG per day to the Sri Lankan government.

The company said this is "with the expectation of significant growth as new power plants become operational."

"This is a significant milestone for Sri Lanka’s transition to cleaner fuels and more reliable, affordable power," Edens said.