Indonesia / Loan Insurance for Donggi-Senoro LNG Project

November 14, 2014

Nippon Export and Investment Insurance

Nippon Export and Investment Insurance ("NEXI") has decided to provide its loan insurance to support financing for the Donggi-Senoro LNG Project ("Project") which will construct the fourth LNG production plant in Indonesia. It is a joint project led by Japan's largest general trading company Mitsubishi Corporation ("Mitsubishi") in partnership with the world's largest LNG buyer Korea Gas Corporation, Indonesia's state oil company PT. PERTAMINA, and also the country's major energy conglomerate PT. Medco. NEXI will provide the Loan Insurance for Natural Resources and Energy as the project is expected to contribute to a stable energy supply for Japan.


PT Donggi-Senoro LNG ("DSLNG") will construct and operate new liquefaction trains with an export capability of 2 million tonnes per annum at Central Sulawesi Province, Sulawesi Island in Indonesia. DSLNG will sell its produced LNGs to Chubu Electric Power Co., Kyusyu Electric Power Co. and Korean Gas Company based on respective long-term off-take agreements. As a result, 65% of the exported LNGs will be distributed to the two Japanese power companies.


This Project is significant in that all its stakeholders are Asian, including Mitsubishi as the major sponsor that will also take a leading role in the plant's operations following its construction.


For this Project, DSLNG is planning to raise about USD1,527 million in total through project financing, and Sumitomo Mitsui Banking Corporation (Agent Bank), The Bank of Tokyo Mitsubishi UFJ, Ltd. and Mizuho Bank, Ltd. will provide about USD 382 million. NEXI will provide the loan insurance to these three commercial banks. Japan Bank for International Cooperation ("JBIC") and Export-Import Bank of Korea ("KEXIM") will also provide direct loans or guarantee to this Project.


NEXI will continue to support projects that will promote stable resource and energy supply to Japan.


Insured Amount USD 382 million
Lenders Sumitomo Mitsui Banking Corporation (Agent Bank), The Bank of Tokyo Mitsubishi UFJ, Ltd. and Mizuho Bank, Ltd.
Covered Risk Political Risk 100% and Commercial Risk 97.5%
Tenor Approx. 11 years