Höegh LNG has received commitment letters from five international banks for a $299 million limited recourse facility for the financing of the 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 facility includes $237 million in long term financing for the FSRU (the "FSRU Loan"), and $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.
President and CEO, 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."
About the project: The project agreement is for a firm 20 year charter of the FSRU with two five year extension options for the charterer. The mooring will be delivered and transferred to PGN at project completion, which is planned for June 2014. The EBITDA contribution from the FSRU is expected to be approximately $40 million p.a. The FSRU is currently under construction at Hyundai Heavy Industries in South Korea.
Höegh LNG is a provider of floating LNG infrastructure services, offering regasification, transportation and production services under long-term contracts. The company operates a fleet of six LNG transportation vessels and two floating storage and regasification units (FSRUs). In addition, Höegh LNG has four new FSRUs on order and has developed a solution for floating LNG production (FLNG). Höegh LNG is a Bermuda based company with established presence in Oslo, Singapore, London and Tampa. The company employs about 80 office staff and about 350 sea farers.
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