Yemen completes $2.8bn financing for gas project

21 May 2008
Financing for the $2.8bn gas-liquefaction plant in Yemen, the country’s biggest project finance deal, has reached financial close.

Citigroup, the financial adviser on the project, has closed the deal slightly ahead of schedule. Syndication was originally expected to close at the end of June.

Financing for the project includes a $120m loan from the Japan Bank for International Cooperation, a $160m loan from the Export Import Bank of South Korea (Kexim) which is guaranteed for 16 years, and a further $240m direct loan from Kexim.

An additional $650m bank loan, and $450m loan from French export credit agency Coface make up the rest of the syndicated bank funding. The seven mandated lead arrangers (MLAs) also provided a $1.1bn loan facility.

Seven banks acted as MLAs on the deal: Bank of Tokyo-Mitsubishi, BNP Paribas, Citigroup, ING Bank, Royal Bank of Scotland, Societe Generale and Sumitomo Mitsui Banking Corporation (MEED 2:4:08).

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