MUFG Secures $3.6 Billion Financing for Delfin LNG's Groundbreaking Floating LNG Project

Mitsubishi UFJ Financial Group (MUFG), recognized as one of the leading financial institutions globally, has announced its pivotal involvement in the successful financing of Delfin LNG's inaugural floating liquefied natural gas vessel, Delfin FLNG 1. This landmark energy infrastructure project is currently under development in Louisiana and offshore in the Gulf of Mexico.

As the Financial Advisor, Initial Coordinating Lead Arranger, and Administrative Agent, MUFG has played a crucial role in enabling the project to reach its Final Investment Decision (FID). Delfin FLNG 1 stands out as the first floating liquefaction facility implemented in the United States and boasts the largest liquefaction capacity globally at 4.4 million tons of LNG per year.

The group orchestrated the structuring and raising of around $3.6 billion in total debt to back the transaction, which comprises roughly $2.8 billion in operating company financing. This financing includes a construction term loan, a revolving credit facility, and senior secured notes, in addition to $800 million earmarked for holding company expenses.

Chip Lewis, Managing Director at MUFG, stated, "This transaction underscores MUFG's dedication to providing strategic guidance, customized financing solutions, and disciplined execution that empowers clients to move forward with intricate projects. We are delighted to leverage our expertise and capabilities to assist Delfin LNG in achieving this significant milestone."

Delfin LNG's project is reinforced by long-term sales agreements for LNG with prominent global energy companies and is being spearheaded by a consortium including Global Infrastructure Partners (a part of Blackrock), Mitsui O.S.K. Lines, Vitol, Diameter Capital Partners, and Delfin Midstream Inc. The first vessel is on track to be designed and constructed over approximately five years by Samsung Heavy Industries Co., Ltd. alongside Black & Veatch.

This financial transaction further affirms MUFG's unwavering commitment to facilitating large-scale, intricate infrastructure and energy financing for clients around the world. Moreover, it strengthens the relationship between MUFG and key stakeholders involved in the Delfin project as the company progresses towards future phases of its floating LNG platform.

About MUFG

Mitsubishi UFJ Financial Group (MUFG) stands among the world's prominent financial groups, with its headquarters in Tokyo and over 360 years of rich history. With a global presence spanning approximately 2,000 locations across more than 40 countries, MUFG employs around 150,000 staff and provides a wide array of services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing. The group aims to embody the world's most trusted financial entity through extensive collaboration across its operational units, timely respond to client needs, and uphold a commitment to shared and sustainable community growth.

The company's operations in the Americas, which include offices across the United States, Latin America, and Canada, deliver comprehensive commercial and investment banking services. Leveraging its longstanding presence in the region, MUFG combines global strength with local insight to support clients across diverse industries and markets.

For further details, please visit MUFG’s website.

Conclusion

MUFG's involvement in the financing of the Delfin LNG project signifies a substantial investment in the future of energy infrastructure. As this project advances, it demonstrates both the scope of MUFG’s capabilities and its commitment to leading complex initiatives within the global energy landscape.