Project Financing for Procurement of LNG Tanker
Supporting Strengthening the Value-chain of Long-term LNG Supplies
- Area: North America
- Marine and Aerospace
- Energy and Natural Resources
- [Project Finance]
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed on December 12, a loan agreement in project financing*1
up to JPY10.752 billion (JBIC portion) with TRANS PACIFIC SHIPPING 4 S.A. (TPS4), a wholly-owned subsidiary of Kawasaki Kisen Kaisha, Ltd. in Panama. The loan is cofinanced with Mizuho Bank, Ltd. and Sumitomo Mitsui Trust Bank, Limited, which brings the overall cofinancing amount to JPY15.360 billion.
This loan is intended to finance TPS4 to procure the liquefied natural gas (LNG) tanker for transporting LNG produced from the LNG project implemented by CHUBU Electric Power Co., Inc. (Chubu Electric Power) in North America.
This loan supports the effort toward strengthening of energy value-chain by such Japanese companies from participating in LNG projects to transporting LNG, and will contribute to securing the long and stable supply of LNG that is increasing in importance in recent years as fuel for thermal power generation, applying the know-how of Japanese shipping companies.
As Japan's policy-based financial institution, JBIC will continue to financially support the promotion of acquisition and development of energy resources by Japanese companies, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.
- *1 Project finance is a financing scheme in which repayments are made solely from cash flows generated by the project and secured only on the project assets.