Tradewinds: Japanese Banks Still Top LNG Project Finance

11 March 2016:  “Japanese banks continue to dominate LNG project finance, but to a lesser degree than compared to a year ago new figures show. Sumitomo Mitsui Banking Corp and Bank of Tokyo Mitsubishi UFJ occupy the top two places respectively providing more than $1bn apiece. However, only three Japanese banks made the top ten last year compared to five in 2014, according to Poten & Partners. “France’s Societe Generale climbed to third from fifth place last year and was joined by four more European finance houses in the top ten.These comprised ING in fourth place, HSBC at seven, Italy’s Intesa Sanpaolo at eight and Lloyd’s Bank at nine, according to the US shipbroker. Canadian banks rounded out the top ten with bank of Nova Scotia moving up the table to fifth place from 20 last year and Royal Bank of Canada sharing ninth place, up from 26th. “Poten said total lending by commercial banks to LNG projects via project finance structures climbed to about $18bn last year versus the $12bn seen in 2014. ‘2015 was a standout year for bank participation in LNG project finance transactions,’ the US shipbroker said. ‘At $18bn it not only eclipsed the $12bn provided in 2014 and $9bn in 2013, but also matches the 2012 level. Last year could have been characterized by even higher contributions by banks to LNG project finance if Corpus Christi train 3 and Cheniere’s Sabine Pass Liquefaction (SPL) trains 1 and 2 had gone ahead as planned. But final investment decisions were deferred by a delay in signing up long-term offtakers. In a January presentation Cheniere estimated the unlevered costs of building Corpus Christi train 3 at $3bn and SPL train 6 at $2bn. Had these two transactions proceeded, bank funding for LNG projects could have reached around $23bn last year.'”