H?egh LNG signs $310m loan facility for Lampung FSRU, mooring project

Norway?s H?egh LNG Holdings Ltd. announced that it has received commitment letters from five banks for the financing of the Lampung FSRU and mooring project in Indonesia.

H?egh LNG has finalized the loan terms and signed the facility agreement with the five banks for the US$310 million limited recourse financing of the project, the company said in a statement received Wednesday. Mandated lead arrangers are DBS Bank Ltd, Oversea-Chinese Banking Corporation Ltd, Korea Development Bank, Standard Chartered Bank, and The Bank of Tokyo Mitsubishi UFJ.

The loan facility includes long-term financing of the FSRU, construction financing of the mooring and a Letter of Credit facility. The FSRU Loan will be available for pre-delivery financing and is 75% covered by a credit guarantee from Korea Trade Insurance Corporation. The FSRU Loan has a tenor of minimum 8 years and an overall profile of 12.5 years. The interest rate will be swapped from floating to fixed for up to 12 years after delivery of the vessel.

H?egh LNG's President and Chief Executive Officer, Sveinung J. S. St?hle, said in a comment: "We are very pleased to have completed the financing of the PGN FSRU and mooring project with existing and new relationship banks and having the Korean export credit agency K-sure guaranteeing the Facility.

This transaction confirms and underlines H?egh LNG's ability to raise long-term debt financing for its FSRU projects at competitive terms. We are also very pleased with the project being on schedule in all aspects for a planned start-up in Q2 2014".

Editing by Reiner Simanjuntak