Hoegh LNG Secures Financing for Its Lampung FSRU Project

Hoegh LNG Holdings Ltd has received commitment letters from five international banks for a USD 299 million Limited Recourse Facility for the financing of 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 (the Project).

The facility includes USD 237 million in long term financing for the FSRU (the FSRU Loan), and USD 62 million in construction financing for the Mooring System. The FSRU loan is available for pre-and post delivery financing.

Banks participating in the financing 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.

Höegh LNG signed the lease agreement with PT Perusahaan Gas Negara (Persero) Tbk (PGN) last year.

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.”

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Press Release, May 21, 2013