Qatar gas firm in $1bn tanker loan plan

TANKER DEAL: Nakilat wants to buy 54 tankers to meet demand for its liquified natural gas. (Getty Images)

Qatar Gas Transportation Co (Nakilat) plans to borrow $1 billion within the next 18 months to pay for tankers after raising an initial $1.5 billion in bank loans, the firm said on Sunday.

The world's largest shipper of liquefied natural gas (LNG) has ordered 54 tankers to cope with growing global demand for its gas. LNG is gas chilled to its liquid state for easier shipping.

In a regulatory filing, Nakilat said it had raised $1.5 billion from 12 banks to fund the construction of 25 LNG vessels it will wholly own.

The debt includes a $925 million senior bank facility with a 17-year tenor, $125 million subordinated bank loan, also with a 17-year tenor, and a 12-year $450 million senior bank facility insured by the Korea Export Insurance Corporation .

"The $1.5 billion debt financing completed today is part of the approximately $2.5 billion additional debt that Nakilat intends to raise over the coming 18 months," it said.

Sumitomo Mitsui Banking Corp (SMBC) was the financial adviser on the transaction.

Qatar, holder of the world's third largest natural gas reserves, plans to more than double its LNG capacity to 77 million tonnes in 2010 from around 30 million tonnes last year.

Nakilat raised $4.3 billion in December, 2007 through a mix of conventional bonds, loans and export credits.

Nakilat is borrowing 90 percent of the cost of the 25 tankers it will wholly own.

The remaining 29 ships, ranging in capacity from 145,000 cubic metres to 216,000 cubic metres, will be owned with partners. (Reuters)

All the ships will be delivered by February 2010. (Reuters)

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