BW Group Ltd. has executed a five-year, US$3 billion facility agreement with a consortium of 11 banks.

The banks, acting as mandated lead arrangers, committed a total sum of US$5 billion against the BW Group's requirement of $3 billion.

The BW Group will use the facility to refinance debt incurred by BW Gas ASA and BW Offshore Ltd.

"The BW Group has grown significantly in recent years and the size and terms of this loan, completed during challenging times in the credit markets, reflect the strength of the group and the good reputation we have with our banks," says Dr. Helmut Sohmen, BW Group chairman.

Clarence Lui, CFO, BW Shipping, adds: "This financing model allows the BW Group and its subsidiaries to draw on the consolidated strength of the group for more cost-effective financing."

BW Gas ASA will receive a US$1.5 billion, five-year unsecured revolving credit facility from the BW Group to refinance its existing US$1.5 billion unsecured revolving credit facility.