The first PIM will come from Oman LNGand will be for a corporate facility, the proceeds of which are expected to be used to cover Oman LNG’s equity participation in QLNG. Banks are expecting the facility to have a tenor of less than 10 years and be sized in the $200 million-300 million range.
‘When the corporate borrowing is done – and it will not take long given the appetite for Omani corporate lending, and the credit rating of Oman LNG – the PIM will be issued for the project financing on QLNG, and this should be in late May or June,’ says a banker looking at the transaction. ‘We’re expecting a $600 million debt package and they’ll be aiming for a tenor of 12-14 years.’
Oman LNG is rated A3 by US rating agency Moody’s Investors Service, and it is expected to take the second largest equity position in QLNG. The government of Oman will be the biggest shareholder, Spain’s Union Fenosais likely to take a single-digit stake and a fourth position will go to another offtaker, yet to be decided.
Citigroupis acting as financial adviser on both transactions.