Qatargas 3 MLAs appointed

21 October 2005
A 26-strong group of mandated lead arrangers (MLAs) has been appointed on the commercial debt package for the integrated Qatargas 3 liquefied natural gas (LNG) project. Societe Generale (SG)is acting as financial adviser (MEED 9:9:05).
A 26-strong group of mandated lead arrangers (MLAs) has been appointed on the commercial debt package for the integrated Qatargas 3 liquefied natural gas (LNG) project. Societe Generale (SG)is acting as financial adviser (MEED 9:9:05).

Commitments totalling $2,825 million were received, to be scaled back dependent on the outcome of negotiations with Japan Bank for International Co-operation (JBIC) to provide a $1,000 million tranche. All the banks bid for $100 million tickets except Calyon, DNB, Qatar National Bankand Royal Bank of Scotland, which took $150 million, and SG, which took $125 million.

Upfront fees were 65 basis points (bp) over Libor and the margin steps up from 45 bp pre-completion, to 60 bp from years four-eight, to 65 bp from years eight-12 and then to 70 bp for the final four years of the 16-year deal. Documentation is due to be completed by the end of November with financial close reached in mid-December.

The US' Export-Import Bank is providing $300 million to the project, a joint venture of Qatar Petroleum and the US' ConocoPhillips. Conoco will raise $1,216 million on its own account.

Qatargas 3is the project company for train 6 at the Qatar Liquefied Gas Company (Qatargas)complex.

Total project costs for the 7.8 million-tonne-a-year train are estimated at about $5,800 million.

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