The project finance transaction for Bahrain LNG is expected to be syndicated in July, according to banking sources.

The $600m plus loan is will have a 20-year tenor.

The Export Import Bank of Korea (Kexim) and Korea Trade Insurance Corporation (KSure) are planning to cover the majority of the loan, leaving a small commercial tranche.

This means Bahrain LNG is likely to secure relatively good pricing given the market conditions.

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 may also seek equity bridge loans.

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

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.

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.

This is the second major loan syndication to go ahead in Bahrain over the normally quiet Ramadan and summer period.

Aluminium Bahrain is currently syndicating a $750m seven-year loan as part of the finance plan for its $3bn expansion.

A second Nogaholding subsidiary, Bahrain National Gas Company (Banagas), is also planning to borrow at least $400m to finance an expansion of its gas processing facilities.