SLNG secures S$1.11 billion term loan from 5 banks to refinance govt borrowings

SINGAPORE LNG Corporation Pte Ltd (SLNG) on Thursday said it has secured a S$1.11 billion term loan facility with five banks.

They are Citibank NA (Singapore Branch), DBS Bank Ltd, Mizuho Bank Ltd (Singapore Branch), Oversea-Chinese Banking Corporation Ltd and The Bank of Tokyo-Mitsubishi UFJ Ltd.

Proceeds from the facility will be used to refinance some of the Singapore government loans that were extended to the company for the development and construction of the initial phases of the Singapore LNG Terminal located on Jurong Island.

This includes the construction of two jetties that can berth a wide range of liquefied natural gas (LNG) carriers from 60,000 cubic metres to 265,000 cubic metres; three LNG storage tanks of 180,000 cubic metres each; and regasification facilities to support the current throughput capacity of six million tonnes per annum.

The company said the terminal began commercial operations in last May and has so far received 39 LNG vessels delivering more than 120 million million British thermal units, or about 2.28 million tonnes of LNG to Singapore.

John Ng, SLNG's chief executive officer, said that the significant external borrowing represents another important step in the development of SLNG as a commercial entity and reflects the growing confidence in the marketplace that the LNG industry in Singapore has a promising future ahead of it.

The company was incorporated by the Energy Market Authority in June 2009 to develop, build, own and operate Singapore's first LNG terminal on Jurong Island.

Societe Generale Corporate & Investment Banking acted as the financial adviser to SLNG in securing the loan facility.