Article: Australia : Margins set on loans for PNG gas project.

Byline: babalu03

Margins have been set on commercial bank and export credit agency loans for a liquefied natural gas project led by ExxonMobil Corp in Papua New Guinea, according to term sheets. The two loans, amounting to at least $5.5 billion, are part of a package to fund the project that also includes a $3.5 billion loan from ExxonMobil and up to $2 billion in bonds. The $1.5-3 billion commercial bank loan will pay margins of 325 bps over Libor during the five and a half year construction period, 400 bps for the first four and a half years of operations and 425 bps for the next five years of operations. Around 20 banks have submitted more than $5 billion in ...

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