Bahrain LNG has gone to the market with a project finance loan syndication for its liquified natural gas (LNG) import terminal project.

The loan is expected to be between $600m and $700m.

The Export Import Bank of Korea (Kexim) and Korea Trade Insurance Corporation (KSure) will cover 80 per cent of the loan, leaving a small commercial tranche.

MEED reported in June that the project finance deal was imminent.

France’s Societe Generale is Bahrain LNG’s financial advisor. The US’s Shearman & Sterling is the legal adviser to the lenders. Canada-based Verus Partners is advising the offtaker, Noga.

Bahrain’s National Oil & Gas Authority (Noga) awarded Bahrain LNG the contract to develop the terminal in 2015.

Bahrain LNG is a consortium of US-based Teekay LNG Partners, South Korea’s Samsung C&T and Kuwaiti group Gulf Investment Corporation (GIC). Teekay owns a 30 per cent stake, while Samsung holds 20 per cent. Singapore-based equity investor GIC owns 20 per cent, with Noga’s parent company, Nogaholding, taking the remaining 30 per cent.

The investors are also expected to use equity bridge loans.

The consortium signed a build-own-operate-transfer (BOOT) contract to develop the scheme. The 20-year own-and-operate period starts in mid-2018.

It is the first public-private partnership (PPP) project of its type in the region.

The total cost of the 800 million-cubic-feet-a-day LNG project is thought to be about $900m.

Bahrain has been an active syndicated loan market over the summer. Aluminium Bahrain syndicated a $750m loan as part of the $2bn financing package for its expansion.