The bond issue for the local/US Ras Laffan Liquefied Natural Gas Company II (RasGas II), to fund the integrated RasGas III project, was priced in early August. Goldman Sachsand Lehman Brotherswere the lead managers; Royal Bank of Scotlandacted as financial adviser (MEED 29:7:05).
The 'medium bond', which has a tenor of 15 years, ended up being worth $1,400 million and was priced at 97 basis points (bp) over US treasuries with a coupon of 5.3 per cent, while the $850 million, 22-year 'long bond' was priced at 130 bp with a 5.84 per cent coupon. The co-managers were ABN Amro, BNP Paribas, Calyon, HSBC, Morgan Stanley, Qatar National Bank and RBS. The 15-year bank tranche of the financing package, which was concluded in late July and raised about $1,600 million, has been correspondingly scaled back to $970 million. There were 19 mandated lead arrangers (MEED 29:7:05). The majority of subscription to the bond issue is understood to have come from US investors. The bank portion has a step-up pricing structure rising to 65 bp from 45 bp. RasGas II is a 70:30 joint venture of Qatar Petroleum (QP)and the US' ExxonMobil Corporation. The next major hydrocarbons project in the country seeking finance will be Qatargas 3, for which a request for proposals is due out to banks by the end of August for a debt package of about $2,900 million. QP and the US' ConocoPhillipsare the sponsors; Societe Generaleis the financial adviser (MEED 5:8:05). www.meed.com/bankingfinance
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.