Golar LNG Finalizes Major Financing Deal for FLNG Gimi Project
Major Financing Agreements by Golar LNG
Golar LNG Limited is excited to share that it has successfully entered into finance lease agreements with a consortium of prominent Chinese leasing companies. This strategic move aims to refinance the current debt facility associated with the FLNG Gimi, amounting to approximately $1.2 billion. While the financial landscape is always changing, the closing of these agreements will rely on various conditions including requisite documentation and approvals from third parties, with expectations for completion within the second quarter of 2025.
Details of the Finance Lease Facility
The new facility will be structured as a sale and leaseback arrangement featuring a 12-year tenor and a 17-year amortization profile. Throughout this period, repayments will be made on a quarterly basis. Once finalized, Gimi MS Corporation anticipates generating around USD 530 million in net proceeds, which will also account for the release of existing interest rate swaps. Golar LNG stands to gain significantly from this move, capturing an impressive 70% of the proceeds, which translates to about USD 371 million.
Understanding Forward-Looking Statements
In the world of finance, it’s crucial to understand that many declarations come with an element of uncertainty. Golar LNG is committed to transparency and aims to clarify that some of the statements made about future expectations and forecasts regarding their operations are classified as forward-looking. These projections, while based on current management estimates, are inherently subject to risks and uncertainties that can impact actual outcomes, which may differ materially from what has been announced.
Company Insights and Future Outlook
As Golar LNG continues its ambitious journey, it’s important to note that their proactive approach to structuring financing reflects a long-term vision focused on stability and growth. Given the global shifts in energy demands and the evolving market landscape, the refinancing of the FLNG Gimi positions Golar as a key player in the LNG sector. Investors and stakeholders can look forward to strategic developments in the upcoming years as the company fortifies its operations.
Investor Relations and Contact Information
Should you have any inquiries regarding this recent announcement or Golar LNG’s broader strategies and upcoming projects, the company encourages reaching out through their dedicated investor relations team. Individuals can contact investor relations directly at +44 207 063 7900. The team includes CEO Karl Fredrik Staubo, CFO Eduardo Maranhão, and Stuart Buchanan, who heads the Investor Relations.
Frequently Asked Questions
What is the financial significance of the financing lease for Golar LNG?
The financing lease allows Golar LNG to refinance existing debt, generating significant net proceeds that will enhance their financial position.
How long is the lease agreement for the FLNG Gimi?
The sale and leaseback facility has a tenor of 12 years, with quarterly repayments scheduled throughout this period.
What percentage of the proceeds will Golar LNG retain?
Golar LNG is expected to retain approximately 70% of the net proceeds from the financing lease.
Why are forward-looking statements important in financial announcements?
They provide insight into management's expectations and future plans but also convey risks and uncertainties that may affect actual outcomes.
Who can I contact for more information about Golar LNG?
You can reach out to their investor relations team at +44 207 063 7900 for any inquiries related to their financial activities and future endeavors.
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