Inpex signs $20B finance agreement for Ichthys LNG Project

Source:INPEX Corp.
INPEX-led Ichthys LNG Project Onshore Facilities Plan

INPEX Corporation (INPEX) has announced that the INPEX-led Ichthys LNG Project has finalized arrangements for US$20 billion in project finance loans including those with eight export credit agencies (ECAs) and 24 commercial banks (ECAs and commercial banks are referred to as Lenders). The Ichthys project financing is the biggest project financing ever arranged in the international financial market.

The project finance credit facilities are comprised of direct loans from ECAs, ECA insured or guaranteed commercial loans, commercial loans from 24 commercial banks and senior sponsor loans from the Ichthys LNG Project participants. Direct loans from ECAs include US$5 billion direct loans from Japan Bank for International Cooperation (JBIC) and US$2.75 billion loans insured by Nippon Export and Investment Insurance (NEXI).

Details of Project Financing Arrangements:

ECAs direct loans (JBIC, KEXIM, Export Finance and Insurance
Corporation (EFIC; Australia))

US$5.8 billion

ECA insured/guaranteed commercial loans

** US$5.4 billion

Commercial loans

US$4.8 billion

Total loans from Lenders

US$16.0 billion

Sponsor loans

US$4.0 billion

Total of Project Financing Arrangements

US$20.0 billion

** US$5.4 billion insured or guaranteed loans comprise of NEXI (Japan), The Export-Import Bank of Korea (KEXIM), Korea Trade Insurance Corporation (K-sure), Atradius Dutch State Business N.V. (Atradius; the Netherlands), Euler Hermes Deutschland AG (Euler Hermes) and Compagnie Française d'Assurance pour le Commerce Extérieur (Coface; France)

Each of INPEX and the other Ichthys LNG Project participants will severally guarantee Lenders the repayment of the loans by Ichthys LNG Pty Ltd during the construction phase. Japan Oil, Gas and Metals National Corporation (JOGMEC) will undertake a part of INPEX’s liability with respect to its portion of such guarantee, where JOGMEC’s liability is limited to US$2 billion.

The Ichthys LNG Project is the first case where the Japanese company is leading such a world-scale LNG project as an operator. The finalization of the project financing arrangements is a major milestone in ensuring the successful development of the promising Ichthys LNG Project that will contribute not only to a long-term stable supply of cleaner energy to Japan but also to a diversification of Japan‘s energy sources.

The participants in the Ichthys LNG Project appreciate the continued support from financial institutions, the local communities, the governments of Australia, Western Australia and Northern Territory, as well as support from other stakeholders for timely delivery of the Ichthys LNG Project.

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