INTL FCStone Advises LNG Group Panama on Power Tender Bid

INTL FCStone Inc. announced that its investment banking division, INTL FCStone Securities Inc. advised LNG Group Panama, S.A. and its project-level vehicle, Panama NG Power S.A., in support of the their successful bid for a 20 year power purchase agreement and the construction and operation of a 550 MW combined cycle gas turbine (CCGT) power plant that will consume natural gas as its fuel.

INTL FCStone Securities Inc. assisted in developing financial models used to determine a competitive final bid price for capacity and energy payments, analyzing the benefits, issues and constraints relating to various capital structures, and advising on the structure and final pricing of the overall bid, all of which resulted in a successful tender process.

INTL FCStone Securities Inc. is also advising the company on its negotiations for long-term liquefied natural gas supply contracts and advising the company on strategic partnerships with leading engineering and technology procurement firms, in advance of its Project Finance Advisory role.

Jose Dapelo, CEO of LNG Group Panama, S.A., said, “The project is expected to yield important benefits for Panama by attracting significant foreign institutional capital, reducing Panama’s cost of capital, providing a source of direct and indirect employment opportunities and greatly diversify Panama’s electricity matrix, securing the country’s long-term energy supply and reducing local industrial and residential energy costs.”

Steve Carlson, President of INTL FCStone Securities Inc., commented, “We are thrilled that our hard work with Panama NG Power S.A. has resulted in a successful bid and we now look forward to helping them raise the estimated US$1,100 million in project costs as the project finance advisor.”

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LNG World News Staff, May 16, 2013; Image: