Mozambique Oil & Gas: Moz LNG debt could close with ‘symbolic’ guarantee – Interfax
(Interfax) – The Mozambique government will struggle to provide a $2.25 billion guarantee on its LNG debt – but the financing could be structured to avoid this.
The use of an innovative debt-structuring solution could mean Anadarko’s $25 billion Mozambique LNG project can move forward without requiring a hefty and unaffordable guarantee from the country’s bankrupt government, sources working on the deal told Interfax Natural Gas Daily.
It is typical for the governments of host countries to stand behind part of the debt financing of LNG projects. However, it is “unprecedented” to have a situation in which the sovereign standing behind the project is in default, said one source working on the deal. read more at Interfax…