Law firm Watson Farley & Williams (WFW) has advised the New York branch of DNB Bank ASA on a US$239.7 million term loan facility provided to International Seaways, Inc. (INSW) for financing six new LR1 product tankers currently under construction at Korean shipyard K Shipbuilding Co., Ltd..
Deal Highlights
- The loan facility is secured by six LR1 product tankers ordered by INSW and being built in Korea.
- One vessel was delivered in September 2025, with the remaining five scheduled for delivery over the following year.
- Part of the facility benefits from credit support provided by Korean export credit agency K-SURE.
- DNB, Norway’s largest financial services group and a leading shipping bank, acted as lead financier in the deal, underscoring its strength in structured ship financing.
Legal and Structuring Team
- London partner Richard Dibble led WFW’s cross-border maritime finance team, supported by senior associates and associates from both the London and New York offices.
- New York partner John Benson and his team advised on New York and Marshall Islands law; tax advice was delivered by partner Daniel Pilarski.
- The shipbuilding counterparties and INSW were advised by other international law firms in their respective jurisdictions, confirming the global nature of the transaction.
Dibble commented: “We are pleased to have advised our long-standing client DNB on this major financing for INSW as it expands its fleet. Our team’s cross-Atlantic coordination ensured efficient implementation of the financing.”
Strategic Significance
For INSW, the transaction supports fleet renewal and growth at a time when product-tanker demand is evolving in response to changing oil flows and supply-chain dynamics. The involvement of K-SURE provides valuable credit enhancement, reducing risk for the bank and signalling confidence in the Korean shipbuilding platform.
For DNB, the deal reaffirms its position as a go-to lender in maritime structured finance, particularly where export credit agency support and high-value asset finance intersect.
What to Watch
- Vessel delivery schedule execution and performance of the newbuild tankers will be key metrics.
- How INSW positions the new LR1s in its network—and whether the company secures employment contracts aligned with long-term asset coverage.
- The degree to which ECA-backed shipping finance remains competitive amid evolving regulatory and environmental pressures.
- Potential shifts in the export credit agency landscape as ship finance continues to adapt to decarbonisation and grid complexity in global trades.