FOR IMMEDIATE RELEASE September 29, 2002
Ken Murphy (202) 565-3200
Export-Import Bank of the United States (Ex-Im Bank) is providing a $135 million comprehensive guarantee that will allow Nigeria LNG Ltd to purchase US-made equipment needed as part of a $1.9 billion expansion of its liquid natural gas production. This transaction represents Ex-Im Bank's largest private sector financing in Nigeria.
The board of directors approved a guarantee that is a blend of project finance risk and corporate credit risk offered on a repayment term of 8.5 years, which demonstrates how Ex-Im Bank will customize its financing to meet the needs of US exporters when reasonable assurance of repayment and credit standards are met.
The expansion of Nigeria LNG's production capacity is expected to produce economic and environmental benefits to Nigeria, as well as, support US jobs. This expansion will help Nigeria meet its stated objective to reduce the open burning (gas flaring) of natural gas. This environmental improvement is expected to be fully implemented by 2008.
Kellogg Brown and Root, a Houston, Texas international engineering and construction company is the US exporter for this transaction. Citibank N.A., London is the guaranteed lender.
Four export credit agencies (ECA) and one development bank are participating in financing Nigeria LNG's production expansion project called NLNGPlus. The ECA lenders (Ex-Im Bank, SACE, NCM and ECGD) and the Africa Development Bank are providing $720 million of the $1.1 billion in financing raised for this project.
Ex-Im Bank is an independent agency of the U.S. government that helps finance the sale of U.S. exports, by providing loans, guarantees and export credit insurance. Ex-Im Bank supported nearly $14 billion in U.S. exports in fiscal year 2002.