Friday, December 1, 2023

Latham advises Venture Global on largest project finance to date ($7.8bn)

Latham & Watkins has advised American-produced liquefied natural gas provider Venture Global LNG on the US$7.8 billion investment decision and financial close for phase two of the project Plaquemines LNG facility, representing the largest project finance to date, with participation of CaixaBank, Santander and BBVA


Venture Global LNG has announced the final investment decision (FID) and successful closing of the US$7.8 billion project financing for the second phase of the Plaquemines LNG facility. Together, phase one, which Latham also advised on, and phase two represent approximately US$21 billion of investment, the largest project financing in 2023 to date.

The proceeds of the debt and equity financing fully fund the balance of construction and commissioning of the second phase of the 20MTPA nameplate capacity project. The company also issued a full notice to proceed to KZJV to continue construction on phase two of Plaquemines LNG.

Plaquemines LNG received all necessary permits, including FERC authorization and non-FTA export authorization from the U.S. Department of Energy. Plaquemines LNG phase two customers include ExxonMobil, Chevron, EnBW, New Fortress Energy, China Gas, PETRONAS and Excelerate Energy.  Marketing is actively underway for the company’s third facility, CP2 LNG, and SPAs have been signed by CP2 LNG with Exxon Mobil, Chevron, EnBW, INPEX, China Gas and New Fortress Energy. 

The lender group for the construction financing includes the world’s leading banks. The lenders who provided funding at closing are: BBVA, Banco Santander, Bank of America, Bank of China, Caixa Bank, Deutsche Bank, Goldman Sachs, ICBC Standard, ING, J.P. Morgan Chase, LBBW, Mizuho, MUFG, Natixis, Royal Bank of Canada, Sumitomo Mitsui Banking Corporation, The Bank of Nova Scotia, Wells Fargo Bank, National Bank of Canada, KfW Ipex-Bank, Helaba, DZ Bank and Regions Bank. ING, Santander, Mizuho, Scotia, and MUFG served as Lead Banks to Venture Global for the transaction.

Latham & Watkins represented Venture Global in the transaction with a Project Finance team led by New York partners Jonathan Rod and Chirag Dedania, with New York associates Annelise Karreman, Jesse Van Genugten, Emma Green, Kim de Looze, Boston associate Austin Wruble and Los Angeles associate Nick Eberhart.

Advice was also provided on Regulatory matters by Washington, D.C. partner Patrick Nevins; on Tax matters by New York partners Jiyeon Lee-Lim and Bora Bozkurt, and Madrid partner Ivan Rabanillo, with New York associate Lukas Kutilek; on Environmental matters by Washington, D.C. partners James Barrett and Stacey VanBelleghem; and on Hedging matters by New York counsel Brett Ackerman, with New York associate Jacqueline Rugart.

Skadden, Arps, Slate, Meagher & Flom LLP served as counsel to the lenders.

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