Offshore Cape Three Points
Portland acted as ECA Advisor to UK Export Finance on the US$1.35bn limited-recourse debt financing for Vitol’s working interest in the Sankofa gas project offshore Ghana — voted 2016 Africa Oil & Gas Deal of the Year.
The project comprises the development of an offshore gas field connected to a floating gas processing, oil production, storage and offloading vessel located above the field with a capacity of 3.5 million tonnes per annum. Portland acted as ECA Advisor to UK Export Finance (UKEF) on the US$1.35 billion limited-recourse debt financing for Vitol’s working interest.
The financing has a hybrid structure combining Reserve Based Lending (RBL) and Project Finance features. Gas is sold to Ghana National Petroleum Corporation under a GSA, with payment security provided by the World Bank.
The financing comprises:
- A $400m UKEF facility split into a $310m direct lending facility (reflecting the very high level of UK content) and a $90m UKEF-covered facility.
- A US$300m International Finance Corporation (IFC) facility split into a US$235m IFC loan and US$65m loan from IFC’s managed co-lending portfolio programme.
- A US$180m Multilateral Investment Guarantee Agency (MIGA) covered facility that provided commercial lenders with cover in respect of (i) currency inconvertibility and transfer restriction, (ii) expropriation, war, terrorism and civil disturbance and (iii) breach of contract.
- A US$470m uncovered commercial bank facility.
- Mandated Lead Arrangers were HSBC, ING, Société Générale and Standard Chartered Bank — later joined by Mizuho, MUFG, Natixis and Bank of China.
2016 Africa Oil & Gas Deal of the Year — Project Finance International.