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| Peru LNG is the country’s biggest project |
The liquefied natural gas project, which will export gas from the Camisea field, and is the largest foreign direct investment in Peru, will be funded through a mixture of loans, equity investment and a local-currency bond. This should be issued in the second half of the year, market conditions notwithstanding. Peru LNG has secured $2.25 billion in loans from third parties – export credit agencies, multilateral institutions and commercial banks – which signed a deal on June 26.
Among the multilaterals is the Inter-American Development Bank, which signed loans totalling $800 million through two equal A and B tranches. It constitutes the largest such transaction for a Latin American borrower in the bank’s history – before this deal there was a $200 million limit per borrower.
"When the IDB was first approached about this project, it was obvious it was very important in terms of Peru’s future economic development," says Warren Weissman, division chief in the structured and corporate finance department at the Washington-based multilateral. "Through extensive analysis, it became clear that this project was viable both financially and technically."