Yamal LNG to borrow from foreign, Russian banks in proportion to share in project financing
DAVOS. Jan 20 (Interfax) - Yamal LNG, which has agreed over $17 billion in project financing with Russian, Chinese, Japanese and European banks, will draw the funds in level amounts, in proportion to the lenders' shares in project financing, Novatek CEO Leonid Mikhelson said in an interview with Interfax.
"Our financial partners are interested in seeing these funds drawn swiftly. We are working to agree drawing practically in proportion to the share of one or another bank in total financing," he said.
The cost of the project is $27 billion. Yamal LNG has signed credit agreements for the equivalent of $12 billion with China Development Bank (CDB) and the Export and Import Bank of China (CEXIM), and the equivalent of $4 billion with Gazprombank and Sberbank .
The Japan Bank for International Cooperation (JBIC) will provide 200 million euros, and Italian bank Intesa Sanpaolo will provide 750 million euros under coverage from Italian export credit agency Sace and France's Coface. In addition, Yamal LNG received the equivalent of $2.4 billion from Russia's National Welfare Fund (NWF).