The facility has two components: a $175 million, eight-year tranche; and a $18 million revolving facility. Citigroup
is acting as Oman LNG’s financial adviser.
‘This is going to be done quickly and cleanly,’ says a potential bidder. ‘It is being fast tracked: the documents are fully drafted and the participants are expected to either take it or leave it. I would expect there will not be any subsequent syndication.’
Oman LNG and Muscat will be the main shareholders in QLNG, with Spain’s Union Fenosa
likely to take a single-digit stake. Supply agreements with three Japanese offtakers – Osaka Gas
, I tochu Corporation
and Mitsubishi Corporation
– were signed in late June, but the shareholding implications are unclear.
The issue of the PIM follows preliminary soundings of the banking market for the main debt package on QLNG (MEED 4:6:04). The PIM on the expected $550 million-600 million, 15-year facility is expected to be issued in July, with financial close achieved by the fourth quarter. Citigroup is also advising on this transaction.