With a Coral Floating Liquefied Natural Gas (FLNG) development project worth US$8bn, Mozambique aims to emerge as a regional and global offshore natural gas producer and supplier
Standard Bank and its 20 per cent shareholder, the Industrial and Commercial Bank of China (ICBC) are collectively the largest lenders to the project. ICBC plays a major role in this transaction by acting as the Pathfinder Bank, K Sure agent, Chinese tranche agent and one of the facility account banks. Standard Bank acts as commercial facility agent, onshore account bank and security trustee in respect of the project.
“This game-changing transaction initiates a cycle of energy investment set to return Mozambique to growth while heralding the country’s arrival as a major global liquefied natural gas supplier,” according to Paul Eardley-Taylor, head for oil and gas at Standard Bank.
“Our support of the funding of the Coral FLNG project grew out of our long-term commitment to Mozambique, consistently supporting the country’s potential as a future offshore natural gas production and export giant,” said Eardley-Taylor.
This is in line with the Standard Bank and ICBC’s strategy to develop East Africa as global energy production and supply hub, especially to East Asia.
Global interest in Mozambique and the region’s potential as future energy suppliers is reflected by broad international participation in the deal. Export credit agencies including Coface (BPI), K Exim, K Sure, Sace and Sinosure, are joined in this transaction by energy giants Eni, Petrochina, GALP, ENH and Kogas.
“This transaction demonstrates ICBC and Standard Bank’s vision of driving Africa’s growth by attracting foreign direct investment back into Mozambique’s promising energy production and export sector,” noted Eardley-Taylor.
