BW Energy has announced the completion of a $365 million project finance facility, backed by China Export & Credit Insurance Corporation, to fund the refurbishment and redeployment of the Maromba Floating Production Storage Offloading vessel to the Maromba field offshore Brazil. Separately, the company has finalised a short-term lease with Minsheng Financial Leasing Co., Ltd for the acquisition of the Maromba development rig.
The project finance facility was significantly oversubscribed and will cover approximately 80 percent of the total FPSO project cost. The funding is provided by a syndicate comprising The Export-Import Bank of China, Abu Dhabi Commercial Bank PJSC, Arab Banking Corporation B.S.C., National Bank of Fujairah, and Commercial Bank of Dubai. CEXIM, ADCB and Bank ABC acted as Mandated Lead Arrangers, whilst ADCB and Bank ABC served as Structuring and Advisory and Documentation Banks. Bank ABC is also acting as Technical Advisory Bank.
Financing Structure
The facility carries an interest rate of SOFR plus a margin of 2.8 percent, and is structured as a project finance loan with progressive drawdowns during the construction period followed by a 6.5-year amortisation period after project completion. A commitment fee of 40 percent of the margin applies to undrawn amounts until completion.
Brice Morlot, CFO of BW Energy, commented on the financing: “The closing of this financing marks an important milestone in the Maromba development, demonstrating our ability to secure competitive long-term funding and build strong relationships with a diversified group of new lenders from Middle East and Asia. Furthermore, it reflects our strategy of reusing existing production infrastructure, which not only reduces overall development costs and environmental footprint but also enables access to cost-effective ECA-based financing.”
Equipment Acquisition
The short-term lease with MSFL covers the purchase price of $107.5 million for the Super Gorilla class jack-up rig BW MAROMBA B. The arrangement allows BW Energy to begin preparations for the Maromba field development whilst working with MSFL to finalise the long-term funding. The current lease is structured as a bareboat charter with interest-only payments and will be replaced by a long-term charter once completed.
The completion of this financing package represents a significant step forward in BW Energy’s development of the Maromba field, demonstrating the company’s ability to attract international capital for its offshore Brazilian operations whilst maintaining a focus on sustainable development practices.
For more information visit www.bwenergy.no
