Canadian LNG project developer Pieridae Energy appointed KfW IPEX-Bank as an adviser in assisting it to finalize a multi-billion dollar untied loan guarantee from the German federal government.
In 2013, Pieridae received written confirmation on behalf of the German government that its proposed Goldboro liquefied natural gas (LNG) facility will qualify in principle under the UFK program (Garantien für ungebundene Finanzkredite) for a guarantee of up to $3 billion of debt.
The funds would be used to construct the Goldboro LNG facility provided that, among other things, at least 1.5 million metric tons per annum of LNG is delivered to Germany/Europe as contemplated by Pieridae’s 20-years, 5 million metric tons per annum, offtake agreement with Uniper Global Commodities, the company said in a statement.
In July 2018, Pieridae applied to the German government to increase in the amount of the guarantee from $3 billion.
The additional coverage will be used to develop natural gas reserves in both Western and Eastern Canada. Pieridae is currently negotiating a potential acquisition to utilize the funding, the company said.
Over the coming months, Pieridae will launch the formal process to secure the required capital (equity and debt) to finance the Goldboro LNG project.
To that end, KfW IPEX-Bank will work in close coordination with Morgan Stanley & Co, and SG Americas Securities (Société Générale), each engaged as Pieridae’s global financial advisers.