Hoegh LNG Receives Commitment Letters for Lampung FSRU Financing (Indonesia)

Höegh LNG said it has received commitment letters from five international banks for a USD 299 million limited recourse facility for the financing of the Lampung FSRU  project. The facility includes USD 237 million in long term financing for the FSRU, and USD 62 million in construction financing for the Mooring System. The FSRU loan is available for pre- and post delivery financing.

Last year Höegh LNG signed the lease agreement with PT Perusahaan Gas Negara (Persero) Tbk (PGN) for the LNG Floating Storage and Regasification Unit (FSRU) and Mooring system to be located offshore Labuhan Maringgai, in the Lampung province, at the south east coast of Sumatra, Indonesia.

Banks participating in the financing for the FSRU project are DBS Bank Ltd, Korea Development Bank, Oversea-Chinese Banking Corporation Limited, Standard Chartered Bank and The Bank of Tokyo-Mitsubishi UFJ, Ltd. 75% of the FSRU loan is covered by a credit guarantee from Korea Trade Insurance Corporation (K-Sure), who has issued a Notice of Acceptance in relation to its guarantee. The facility is subject to final documentation, which is in the progress of being completed.

President and Chief Executive Officer, Sveinung J. S. Støhle, says: “We are very pleased with the structure of this facility. Commercial banks expressed strong interest in participating in the financing of this Project and we had to limit the bank group. In addition, we continue our excellent relationship with K-Sure. During the process we have developed new relationships with regional and international banks with strong presence in the Asia Pacific region. The success of this Project further enhances our competitive position and underscores Höegh LNG’s strong position in the FSRU market, which is and will be the core focus for the Company’s further growth. The Lampung FSRU project is on schedule in all aspects for its planned start-up in June 2014.”

The project agreement is for a firm 20 year charter of the FSRU with two five year extension options for the charterer. The mooring will be delivered and transferred to PGN at project completion, which is planned for June 2014. The EBITDA contribution from the FSRU is expected to be approximately USD 40 million p.a. The FSRU is currently under construction at Hyundai Heavy Industries in South Korea.

[mappress]
LNG World News Staff, May 21, 2013; Image: Höegh LNG