Case study · Energy
Coral South FLNG
The first floating LNG project ever project-financed. Portland acted as Financial Advisor to the ECA + bank pathfinder lender group on the US$4.6bn debt package for this 3.37 mtpa FLNG off the coast of Mozambique.
Deal value
US$8.6bn
Portland's role
Financial Advisor to ECAs and banks
Year
2017
Transaction background
The project is a 3.37 mtpa floating liquified natural gas project off the coast of northern Mozambique supplied from the Area 4 gas field concession. The total senior debt was US$4.6bn provided largely by ECA facilities. Portland acted as Financial Advisor to the Pathfinder lender group comprising SACE, BPI, KEXIM, KSURE, CEXIM, BOC and ICBC.
Transaction structure
Project Financing — Mozambique FLNG. Financial Advisor to ECAs and banks.
Selected highlights
- First floating LNG project that was project-financed and the first LNG project in Mozambique.
- Financing overcame a number of challenges including untested technology, Mozambique security issues, country risk (including sovereign default just before financial close) and insurance issues.
- The Project has been so successful that the follow-on project, Coral North, is currently in the financing process with Portland Advisers mandated.
- Total project cost of US$8.6bn with an integrated debt to equity ratio of c. 50:50.
- Borrower is an SPV owning the floating LNG vessel; upstream field development is funded with equity.
Transaction awards
2017 Middle East & Africa Oil & Gas Deal of the Year — Project Finance International.
Financial institutions involved
Project imagery
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