Golar LNG has put in place a US$1.2 billion asset-backed debt facility to refinance a floating liquid natural gas vessel FLNG Gimi operated by its subsidiaries.

The lenders are ABN Amro, Citibank, DNB, Goldman Sachs, and Standard Chartered Bank. Norton Rose Fulbright advised ABN Amro as documentation bank.

The debt replaces an existing US$627 million facility and features a seven-year tenor, a 16-year amortization schedule, and bears interest at Sofr plus 2.5%.

“The transaction demonstrates the continued strength and resilience of the LNG sector, and the confidence of leading financial institutions in the long-term viability of floating LNG projects,“ says London-based Norton Rose Fulbright partner Richard Howley.

The converted LNG carrier ( originally built in 1976 ) is operating at the BP Greater Tortue Ahmeyim project off the coast of Mauritania and Senegal. It aims to start commercial operations in June, under a 20-year lease agreement with BP.

An FLNG unit is typically financed with bank debt during construction, but once it is operational and starts generating cash flows, it is refinanced with bonds.

Earlier this year, Golar LNG finalized its exit from the LNG shipping business after 50 years. The company is now focused on FLNG infrastructure.