Loans set to fund the Cameron LNG Project being lined up

By Marc Castro

Oct 25, 2013 06:46 PM EDT

The consortium running the Cameron LNG Project is seeking a capital infusion worth USD5 billion from commercial banks. The members of the consortium include GDF Suez, Nippon Yusen KK, Mitsubishi Corp., Mitsui & Co., and Sempra Energy.

The total capital requisite is at USD5 billion and would come from loans to commercial banks. This is part of a USD7 billion debt financing for the project, as confirmed by five individuals familiar with the negotiations. The said financing would include USD1.5 billion worth of bonds, according to two of the sources, all of whom sought anonymity because of the private nature of the negotiations.

The project involves the construction of a USD10 billion terminal located in Hackberry, LA. The said project is awaiting approval from the Department of Energy to be able to export LNG to countries that the US has no standing free trade agreements in place. 

Among the commercial banks involved with the transaction are Bank of Tokyo-Mitsubishi UFJ Ltd., Muzuho Financial Group Inc. and Sumitomo Mitsui Financial Group. These banks would provide USD5 billion of funding according to two of the anonymous sources. The sources identified the Japan Bank of International Cooperation as another source of USD3 billion in funds.

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