Navigator Holdings Ltd. (Navigator Gas) has announced the signing of a $121.8m senior secured post-delivery term loan to finance the delivery of two 51,350 cbm ammonia-fuelled liquefied ammonia carriers, which will also be capable of carrying liquefied petroleum gas (LPG).

The facility agreement, signed on 31 July, was entered into by subsidiaries of Navigator Amon Shipping AS — a joint venture between Navigator Gas and Amon Maritime — with lenders ING Bank N.V. (London Branch), Société Générale and Oversea-Chinese Banking Corporation Limited.

Under the terms of the agreement, the lenders will make available up to $121.8m to finance up to 70% of the cost of the two newbuild vessels at delivery. The vessels are currently under construction at Nantong CIMC Sinopacific Offshore & Engineering Co., Ltd. in China, under shipbuilding contracts signed in July 2025. Delivery of the two vessels is expected in May 2028 and September 2028, respectively.

Pre-delivery payments and the remaining portion of delivery instalments will be funded from the cash resources of the borrowers, with funding provided by the shareholders of Navigator Amon Shipping AS.

The facility carries a post-delivery tenor of six years and is secured by, among other things, mortgages over the newbuild vessels. Interest on outstanding amounts will be charged at SOFR plus 1.35%, payable quarterly. Obligations under the facility are guaranteed by Navigator Gas and Navigator Amon Shipping AS.

Gary Chapman, chief financial officer of Navigator Gas, said the financing represented a further step in converting the company’s ammonia growth strategy into a “fully financed, commercially contracted investment.”

Chapman noted: “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 while we advance the construction of these next-generation vessels.”

He added that the vessels are designed to participate in both existing LPG and ammonia trades, as well as what he described as “the emerging market for ammonia as a marine fuel.”

Navigator Gas, listed on the New York Stock Exchange under the ticker NVGS, operates a fleet of 54 semi- or fully-refrigerated liquefied gas carriers, 24 of which are ethylene- and ethane-capable, according to the company. It also holds a 50% share, through a joint venture, in an ethylene export marine terminal at Morgan’s Point, Texas.

Amon Maritime, the joint venture partner, describes itself as focused on the use of ammonia as a marine fuel, operating across ship newbuildings, ship management, technology development and bunkering infrastructure. The company is privately owned by its founders, employees and Mosvolds Rederi, the maritime investment arm of the Glastad Group.