Bank of China contributes to $1.5 billion loan tranche of $3 billion debt package for the Nigeria LNG Complex Train 7 Expansion Project (Linked to Record ID#92103)

Project narrative

On May 13, 2020, Nigeria LNG Limited (NLNG) — a special purpose vehicle and joint venture of Nigerian National Petroleum Corporation (49% equity stake), Shell (25.6% equity stake), Total (15% equity stake), and Eni (10.4% equity stake) — signed a $3 billion debt financing package with a syndicate of banks for the Nigeria LNG Complex Train 7 Expansion Project. The debt financing package consisted of a $1.5 billion covered tranche with Korea Trade Insurance Corporation (KSure), the Korea Export-Import Bank (K-EXIM), and SACE, and another $1.5 billion uncovered tranche with 26 International and Nigerian lenders (including Bank of China and the Industrial and Commercial Bank of China). Bank of China’s contribution is captured via Record ID#92104 and the Industrial and Commercial Bank of China’s contribution is captured via Record ID#92103. The uncovered tranche carried the following borrowing terms: a 9-year maturity, 4-year grace period, and interest rate of LIBOR plus a 3.75% margin. Lenders will rely on NLNG's balance sheet and will have no direct recourse to NLNG's shareholders. The proceeds of the loan are to be used by the borrower to finance FEED and EPC contracts, which were awarded to two separate consortia in August 2018. The purpose of the project is to add approximately eight million tons per annum of LNG at the Bonny Island LNG Complex in Nigeria. Prior to project commencement, six LNG trains produced an annual total of 22 million tons at the Bonny Island LNG Complex, which was expected to rise to 30 million tonnes when Train 7 was put into operation. The lenders also required that the borrower (NLNG) and its contractors implement an environmental and social action plan (ESAP) in accordance with international (IFC Performance) standards Saipem, Chiyoda, and Daewoo E&C are the contractors responsible for implementation. A groundbreaking ceremony took place on June 15, 2021 and the Nigeria LNG Complex Train 7 Expansion Project was originally expected to take five years to complete (expected completion date: June 15, 2026). However, the project has encountered implementation obstacles and delays. On June 10, 2021, there was a protest blockading the project’s gates by the Finima community. NLNG later evicted the group during construction. By October 2023, the project had achieved a 50% completion rate.