KN gets state guarantee for NIB loan

Lithuanian government inked a state guarantee agreement with the Nordic Investment Bank providing backing to its LNG terminal operator Klaipedos Nafta regarding the €135.16 million ($148.65 million) loan.

The state guarantee agreement secures obligations of the company to the NIB according to the loan agreement entered at the end of December for a term up to 25 years to finance the balancing of the LNG terminal security additional component to the natural gas transmission price.

To remind, Klaipedos Nafta said it will use the funds to finance the rent under the time charter party signed with Höegh LNG for the floating storage and regasification unit (FSRU) Independence serving as the LNG import facility.

Prior to receiving state backing, KN had to fulfil certain conditions that included a €20 million bank guarantee as well as an agreement with the Ministry of Finance until January 2025.