PF Archive

NLNG-Plus: Collateral trains

01 12 2002

Arrangers on the much-anticipated $1.06 billion Nigerian LNG-Plus deal claim Christmas in Nigeria will come early - the project will sign on December 18. General syndication of the $800 million international tranche came in oversubscribed in the second week of November, with Bayerische Landesbank, Natexis, Dexia, CIC, KfW and Unicredito all signing up. Syndication closed in the second week of December. NLNG-Plus is a first on many levels - not least size. It is the largest-ever private-sector financing project to be put together in sub-Saharan Africa. It is also Nigeria's most ambitious construction project, the country's biggest project financing to date and a miracle of arranger marketing and structuring given most export credit agencies are off cover for Nigeria. NLNG-Plus is also a break with past NLNG financings - the three existing LNG trains were funded on the back of shareholder funds. Trains 4 and 5 (which this deal finances) have gone the non-recourse route. The volatility of local market conditions and the fact that this is a market first meant creating deep comfort for investors. The project has been structured such that is backed by strong economics. The financing for trains 4 and 5 will...