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CSSC commits to $970m financing on Golar GoFLNG Hilli

CSSC commits to $970m financing on Golar GoFLNG Hilli
Golar LNG has has received a financing commitment for its first GoFLNG project from CSSC (Hong Kong) Shipping.

The conversion financing and sale and leaseback deal will fund up to 80% of the project's costs.

The two-phase financing structure will start with a $700m drawdown to cover conversion costs once tolling contracts are ratified by by the Cameroon government later this year. Those funds will not be made available until Golar has spent $400m on the conversion, of which it has already spent $385m to date.

This should mean that after ratification, the conversion will be fully funded with no further investment from Golar.

Upon delivery of GoFLNG Hilli by Keppel Shipyard, a further $260m will be made available for drawdown with a 10-year tenor, 15-year amortisation profile and the expectation that the unit will be sold to Golar LNG Partners.

The company noted that this agreement will free up its own equity for use on other FLNG programmes.

Golar signed for a second FLNG unit at Keppel at the very end of 2014, and is in talks for a third unit at the yard.