CSSC (Hong Kong) Shipping Leasing, a branch of China State Shipbuilding Corporation(CSSC), has inked a deal with Golar LNG to provide USD960 million financial commitment for the conversion and leaseback of the GoFLNG Hilli.
According to the agreement, CSSC Leasing will fund 80% of the project in two phases.
Related news: Keppel wins third FLNG conversion from Golar LNG
In the first phase, Golar will receive USD700 million after it has spent USD400 million out of the estimated USD1.2 billion conversion cost. The remaining USD260 million will be paid to Golar once the unit is delivered from Keppel Shipyard, the builder of the unit.
Golar had already spent USD385 million on the project, and is expected to get the USD400 million financing soon.
The financing has a tenor of 10 years, a 15-year amortisation profile, and takes into consideration the eventual sale of GoFLNG Hilli to Golar LNG Partners, according to Golar.
The expected cost of the financing during the conversion period is 6.25%, and the long-term financing is projected to cost less than 6% on a fully swapped 10-year basis.