Norton Rose advises on LNG financing
Global legal practice Norton Rose Fulbright has advised a syndicate of lenders on four limited-recourse facilities totalling US$787 million to part finance the procurement of four 174,400m3 LNG vessels to be built by Hudong-Zhonghua in China.
CNOOC Energy Technology & Service, Teekay LNG Partners, China LNG Shipping and BW Gas have raised US$787 million of limited-recourse facilities to part finance the Chinese LNG shipping project. The project involves the procurement of four 174,400m3 LNG vessels to be built by Hudong-Zhonghua in China. The vessels will be delivered in 2017-2018 and will be on long-term charters to a subsidiary of BG Group as part of their global shipping fleet.
Australia and New Zealand Banking Group (ANZ) and The Export-Import Bank of China acted as Joint Financial Advisors to the Sponsors and BG Group. The financing comprises 50 per cent of direct ECA loans provided by China EXIM and 50 per cent of commercial loans. The facilities are provided to four special purpose companies each holding one vessel and have a door-to-door tenor of up to 17 years. The Mandated Lead Arrangers for the financing are ANZ, Bank of America Merrill Lynch, The Bank of Tokyo-Mitsubishi UFJ Ltd, China Exim, Mizuho Bank Ltd, Sumitomo Mitsui Banking Corporation and Industrial and Commercial Bank of China.
Norton Rose Fulbright acted for the lenders through the Singapore, Hong Kong and Shanghai offices. The team was led by partner Ben Rose in Singapore.
Clifford Chance acted for the Sponsors through their Hong Kong office.
Press Release, August 13, 2014; Image: HZ-Shipgroup