EXIM reaffirms support for Mozambique LNG project, signs initial financing documents
As a major integrated liquefied natural gas (LNG) project in Mozambique advances toward fruition, the Export-Import Bank of the United States (EXIM) has reaffirmed its continuing support for the development by initiating the process of providing $4.7 billion in financing that will support an estimated 16,700 American jobs over the five-year construction period.
EXIM Chief Banking Officer Stephen Renna recently signed initial documents relating to a board-authorized direct loan that would support U.S. exports for the development and construction of the LNG project located on the Afungi Peninsula in northern Mozambique. EXIM’s action came as other organizations, which also intend to lend to the project, moved ahead with their financing plans.
Once additional documents are finalized and conditions are satisfied, EXIM’s financing will support a forecasted 16,700 U.S. jobs at 68 suppliers located in eight states: Florida, Georgia, Louisiana, New York, Oklahoma, Pennsylvania, Tennessee, and Texas and the District of Columbia. Follow-on sales are expected to support thousands of additional jobs across the United States.
“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.”
EXIM’s Board of Directors approved financing for the onshore portion of the Mozambique LNG project in September 2019 and amended it in May 2020 to encompass the project’s offshore production.
The transaction supports 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. Launched in December 2018, Prosper Africa brings together the resources of more than 15 U.S. government agencies, including EXIM, to connect U.S. and African businesses with new buyers, suppliers, and investment opportunities.