Nakilat closes initial round of USD4.3 billion financing

The US$4.3 billion will be used primarily to fund the building of Nakilat's 16 state-of-the-art LNG vessels to transport Qatari LNG to various markets around the world and is believed to be the largest ever single round of LNG vessel financing. The 16 LNG vessels are expected to advance the State of Qatar's ambitious program to commercialize the world's largest non-associated gas field, the approximately 900 tcf North Field, by linking the upstream and downstream components of the Qatari LNG value chain.

The closing of the initial financing represents the completion of another step in QGTC's plan to become the world's largest transporter of LNG. The financing builds on Nakilat's past successes which included entering into shipbuilding contacts with three prominent Korean shipyards (affiliates of Samsung, Hyundai and Daewoo) and into long-term charter contracts with Qatargas II and Qatargas 3 for the 16 LNG vessels.
Additionally, Nakilat recently entered into management contracts for the LNG vessels with STASCO, a subsidiary of Royal Dutch Shell. Nakilat anticipates that its future steps will include plans to build up to an additional 11 LNG vessels for charter to RasGas 3 and Qatargas 4 and the related second round of financing for an additional US$3.3 billion.

The unprecedented initial financing raised funds from a variety of sources, including a syndicate of 24 commercial banks, the private capital markets and two Korean export credit agencies. The financing allocations were as follows:
• Senior secured debt facilities with commercial banks for up to US$2.2 billion
• Subordinated secured debt facilities with commercial banks for up to US$175 million
• Senior secured bonds due 2033 for US$850 million (rated Aa3 by Moody's, A+ by S&P, and A+ by Fitch)
• Subordinated secured bonds due 2033 for US$300 million (rated A1 by Moody's, A- by S&P, and A- by Fitch)
• Senior secured debt facility with the Export-Import Bank of Korea (KEXIM) for up to US$500 million
• Senior secured debt facility with a syndicate of commercial banks insured under a Korea Export Insurance Corporation (KEIC) insurance guarantee for up to US$225 million.