Inpex closes loan refinancing for Ichthys LNG Project

Inpex Corporation has concluded a loan refinancing agreement for a portion of the project finance loans arranged in 2012 with export credit agencies (ECAs) and commercial banks. The agreement includes loan conversions and improved borrowing conditions.

The loan refinancing agreement is the result of a refinancing bid formally issued by INPEX in March 2020 with the objective of improving borrowing conditions, based on the Project achieving financial completion in December 2019 and continuing to sustain stable production operations. The Project’s smooth progress despite the impact of the decline in oil prices caused by the spread of COVID-19 and other factors was evaluated favorably. Accordingly, INPEX received commitments from financial institutions exceeding the amount expressed in the refinancing bid. 

Total project finance loans amount to approximately USD 15.6 billion, of which the refinancing amount covered in the refinancing agreement is approximately US$8.3 billion. The agreement involves seven ECAs and 28 commercial banks.

The refinancing agreement is expected to enhance the value of the Project by reducing the financial commitment of Ichthys LNG Pty Ltd. Furthermore, the agreement is part of INPEX’s cost reduction initiatives under the company’s basic policy in response to the decline in oil prices and is expected to contribute to improving the resilience of the INPEX Group’s business structure.