Inpex of Japan Secures USD 20 Billion in Loans for Ichthys

INPEX of Japan said that the INPEX-led Ichthys LNG Project has finalized arrangements for US$20 billion in project finance loans including those with eight export credit agencies (ECAs) and 24 commercial banks (Lenders). 

The Ichthys project financing is the biggest project financing ever arranged in the international financial market.

The project finance credit facilities are comprised of direct loans from ECAs, ECA insured or guaranteed commercial loans, commercial loans from 24  commercial  banks  and senior sponsor loans from the Ichthys LNG Project participants. Direct loans from ECAs include   US$5 billion direct loans from Japan Bank for International Cooperation (JBIC) and US$2.75   billion loans insured by Nippon Export and Investment Insurance (NEXI).

Each of  INPEX and  the other Ichthys LNG  Project participants will severally guarantee Lenders the repayment of the loans by Ichthys LNG Pty Ltd during the construction phase. Japan Oil, Gas and Metals National Corporation (JOGMEC) will undertake a part of INPEX’s liability with respect to its portion of such guarantee, where JOGMEC’s liability is limited to US$2 billion.

The Ichthys LNG Project is the first case where the Japanese company is leading such a world-scale LNG project as an operator. The finalization of the  project financing arrangements is a major milestone in ensuring the successful development of the promising  Ichthys LNG Project that will  contribute  not only to a long-term stable supply of cleaner energy to Japan but also to a diversification of Japan‘s energy sources.

The participants in the Ichthys LNG Project appreciate the continued support from financial   institutions,  the local communities, the governments of Australia, Western Australia and   Northern Territory, as well as support from other stakeholders for timely delivery of the Ichthys LNG Project.

[mappress]
LNG World News Staff, December 17, 2012; Image: Inpex