Export-Import (EXIM) bank United States said it is in the process of providing $4.7 billion in financing the liquefied natural gas (LNG) project in Mozambique.
Exim Bank United States fund is the largest commitment given by any lender towards the priciest hydrocarbon development in Africa.
The 13 Million Tonnes Per Annum LNG project will cost $20 billion to develop but Total which is in charge of the project is borrowing $14 billion from 28 financiers.
EXIM bank is one of eight Export Credit Agencies financing the project include Japan Bank for International Corporation (JBIC), Nippon Export and Investment Insurance (NEXI), UK Export Finance (UKEF), Servizi Assicurativi del Commercio Estero of Italy (SACE), Export Credit Insurance Corporation of South Africa (ECIC), Atradius Dutch State Business (Atradius) and Export-Import Bank of Thailand (EXIM Thailand).
There are 19 commercial banks financing the project in which Standard Bank of South Africa, is leading with $485 million loans. The Africa Development Bank, which is neither an Export Credit Agencies (ECA) nor a commercial bank, is putting $4000 million.
EXIM bank US involvement is primarily to support American contractors involved in the project. The bank said over the five-year construction period, it’s funding will support an estimated 16,700 American jobs.
“As the Mozambique LNG project marks further milestones, we want to underscore EXIM’s continuing commitment to this project,” said EXIM President and Chairman Kimberly A. Reed. “This project continues to serve as a great example of how a revitalized EXIM can help ‘Made in the USA’ products and services compete in a fierce global marketplace and counter competition from countries like China and Russia. It also reinforces EXIM’s strong support for President Trump’s Prosper Africa initiative to unlock opportunities for U.S. businesses in Africa. This authorization will stand as a reminder to companies across the board in all industries: EXIM is open, and we want to work with you to help fill financing gaps in the market to support our great American workers and exporters.” The Exim Bank US press release read in part.
The bank also said that the transaction is in line with the Trump Administration’s Prosper Africa Initiative, “a whole-of-government economic effort to substantially increase two-way trade and investment between the United States and Africa.”