The private finance arm of World Bank, International Finance Corporation (IFC), has agreed to extend finance to build Bangladesh’s first LNG import terminal to Excelerate Energy Ltd.
The project, with a total investment of US$179.4 million, will be co-developed by Excelerate Energy Bangladesh Ltd, a special purpose vehicle (SPV) by the IFC and Excelerate Energy Ltd. The financing of the project will be through 70 per cent debt and 30 per cent equity. The SPV will take care of the development, construction, operation and transfer of an offshore marine terminal to support the transfer, storage and regasification of liquefied natural gas for delivery to an onshore transfer location in Bangladesh.
“IFC will lend up to US$34.1 million for its own account through an A loan and will mobilize up to an additional US$91.4 million in Parallel loans or IFC B Loans. IFC also expects to invest up to US$10.8 million in equity for its 20 per cent equity share in the project company.”
Bangladesh has been facing natural gas shortages due to growing energy demand and depletion of natural gas reserves which are expected to be covered by the project, the first LNG import terminal in Bangladesh.