Swan nears FSRU loan deal with SBI

Vol 18, PW 24 (30 Jul 15) News in Brief

Some might doubt Mumbai-based Swan Energy's LNG expertise.

But a senior company source claims it is on track to complete financial closure next month (August) for its 5m t/y LNG FSRU project at Jafrabad near Pipavav in Gujarat. Swan intends to borrow Rs3800cr ($592m) "mostly" from Indian banks led by State Bank of India (SBI)with merchant banker SBI Caps managing the transaction.

"We're looking mainly for rupee (not US dollar) loans as (rupee) interest rates will come down," he says. Project promoters Swan (51%), Teekay Shipping (38%) and GSPC (11%) will bring in Rs1400cr ($218m) as equity.

Swan adds 4m t/y of capacity is taken, with GSPC booking 1.5m t/y but declined to give further details. "We'll also soon sign the port concession agreement with Gujarat Maritime Board," we hear.

Swan has short-listed EPC contractors for the Rs5200cr ($810m) project and will award contracts later this year. Construction is expected to begin in early 2016 with commissioning scheduled for 2019.