Santos (ASX:STO) Executes A$2B New Bank Facility
The facility was self-arranged and attracted total offers of A$2.9 billion from 13 banks. Offers from nine banks were accepted in arriving at the final facility size of A$2 billion with terms ranging from four to seven years. The weighted average term of the new facility is five years, the company said.
The facility will provide significant additional liquidity during the scheduled construction period of Gladstone LNG (GLNG) project and Papua New Guinea LNG (PNG LNG) project, and delivers average maturities beyond first LNG production from the two projects, said Santos Executive Vice President and Chief Financial Officer Peter Wasow.
Earlier this month Santos said it remains in detailed ongoing talks with a number of parties on potential LNG sales, equity in the project and collaboration between projects. It was reportedly that the company was close to completing LNG supply agreements with Korea Gas Corp. (KOGAS)(SEO:036460) and Sinopec (SHA:600028)(HKG:0386).
Korea Gas Corporation
China Petroleum & Chemical Corporation (SINOPEC)