BW Energy has concluded plans for a USD 365 million project finance facility, backed by China Export & Credit Insurance Corporation (Sinosure), to fund the refurbishment and redeployment of the Maromba Floating Production Storage Offloading vessel (FPSO) to the Maromba field offshore Brazil. Separately, the Company finalised a short-term lease with Minsheng Financial Leasing Co., Ltd (MSFL) for the acquisition of the Maromba development rig.
The project finance facility was significantly oversubscribed and will cover approximately 80% of the total FPSO project cost and is provided by a syndicate comprising The Export-Import Bank of China (CEXIM), Abu Dhabi Commercial Bank PJSC (ADCB), Arab Banking Corporation B.S.C. (Bank ABC), National Bank of Fujairah (NBF), and Commercial Bank of Dubai (CBD). CEXIM, ADCB, and Bank ABC acted as Mandated Lead Arrangers, and ADCB and Bank ABC acted as Structuring and Advisory, and Documentation Banks. Bank ABC is also acting as the Technical Advisory Bank.
The facility has an interest rate of SOFR plus a margin of 2.8%, and is structured as a project finance loan with progressive drawdowns during the construction period, followed by a 6.5-year amortisation period after project completion. The commitment fee of 40% of the margin applies to undrawn amounts until completion.
“The closing of this financing marks an important milestone in the Maromba development, demonstrating our ability to secure competitive long-term funding and build strong relationships with a diversified group of new lenders from the Middle East and Asia. Furthermore, it reflects our strategy of reusing existing production infrastructure, which not only reduces overall development costs and environmental footprint but also enables access to cost-effective ECA-based financing,” said Brice Morlot, CFO of BW Energy.
The short-term lease with MSFL covers the purchase price of USD 107.5 million for the Super Gorilla class jack-up rig BW MAROMBA B. It allows BW Energy to begin preparations for the Maromba field development while working with MSFL to finalise the long-term funding. The current lease is structured as a bareboat charter with interest-only payments and will be replaced by a long-term charter once completed.
