Taylor-DeJongh Advises Santos on GLNG Financing (Australia)

Santos Ltd has entered into facility agreements covering USD 1.2 billion of direct loans and guarantees from a consortium of Export Credit Agencies (ECAs) and commercial banks. Taylor-DeJongh acted as financial advisor to Santos on the three facilities.

The SACE- and EFIC-guaranteed facilities total USD 280 million and USD 250 million respectively and amortize over 8½ years following completion of the GLNG project. The third facility, which is partly funded by EDC, totals USD 670 million and matures in 2019.

With an overall cost of USD 16 billion, the GLNG project will process coal seam gas (CSG) into liquefied natural gas (LNG) and has a nameplate capacity of 7.8 million tonnes of LNG per annum (two trains). The new ECA facilities provide Santos with flexible drawdown dates during the construction period and a long term amortising profile which matches the long term nature of Santos’s investment in GLNG.

The Taylor-DeJongh team was led by London Director Afonso Reis e Sousa, who said: “We are delighted to have closed the first ECA financing related to a CSG-to-LNG project. There were a number of unique aspects of the financing, including the dovetailing of a corporate facility structure with the underlying project. In addition, the financing was negotiated against the backdrop of the Eurozone crisis; the ability to close this financing in the current market environment speaks to the determination and hard work of all parties involved.”

Santos Chief Financial Officer Andrew Seaton said the ECA facilities were part of Santos’ funding strategy announced in late 2010 and demonstrate Santos’ ability to source capital from a diverse range of sources on attractive terms. “The strong support we received from existing and new lenders demonstrates the strength of the Santos business and financial profile,” he added.

[mappress]

LNG World News Staff, December 26, 2011