Deutsche Bank Luxembourg S.A. has completed a landmark US$3 billion Export Credit Agency (ECA)-backed hybrid corporate financing for Nigeria LNG Limited (NLNG) to develop the NLNG Train-7 Project, Global Legal Chronicle reported on Tuesday.
The NLNG Train-7 is a joint venture owned by Nigerian National Petroleum Corporation (NNPC), Shell, Total and Eni.
A press statement issued by global law firm, White and Case LLP, which advised Deutsche Bank Luxembourg S.A. on the deal, said Deutsche Bank acted as Global Facility Agent, International Commercial Bank Facility Agent, K-SURE Facility Agent, SACE Facility Agent, K-Exim Facility Agent and Intercreditor Agent.
“This first hybrid corporate financing for development of an LNG project in Africa sets the benchmark for future LNG facility financings globally and was provided Export Credit Agencies, Development Finance Institutions and over 26 international and local commercial banks,” the statement read in part.
In a related development, the Nigerian Content Development and Monitoring Board (NCDMB) and the NLNG Tuesday formally teed off the Train-7 Project with a meeting on the Engineering, Procurement and Construction components of the project.
Simbi Kesiye Wabote, Executive Secretary of NCDMB, said the virtual event offered a chance to NCDMB officials to clarify some technical issues pertaining to the Nigerian content components of the project.
Wabote described the Train-7 project as record breaking, adding that the journey had been characterised by many firsts, especially in methodology, stakeholders’ awareness and participation as well as speed of completion of the regulatory approvals by the board.
He stated that the signing of the Train-7 contract in the midst of the COVID-19 pandemic was a global record, adding that it provided the country the much-needed boost in the current challenging times.
“We must not just limit ourselves to the Nigerian content levels contained in the Nigerian Content Plan (NCP) and the Nigerian Content Compliance Certificate (NCCC).
“We must push the boundaries so that upon completion, we can brag about the values that the project would have added to the oil and gas industry as well as the country at large,” he said.
Wabote urged the contractors to embrace “we can do it here” spirit with respect to employment generation, trainings for new skills, in-country capacity utilisation, addition of new capabilities, Research and Development as well as uncommon innovation into uncharted territories.