Golar LNG Ltd has successfully arranged a significant financial lease agreement with top Chinese leasing firms, aimed at refinancing the existing debt facility of the FLNG Gimi. The deal is valued at approximately US$1.2 billion and is expected to close in the second quarter of 2025, pending certain conditions. This leaseback facility spans 12 years with a repayment structure spread over 17 years. Upon completion, Gimi MS Corp anticipates generating roughly US$530 million in net proceeds, a portion of which will benefit Golar LNG.

Revamping Financial Framework

The financial restructuring involves a substantial sale and leaseback agreement that extends over a decade, offering quarterly installment repayments across its duration. With an amortization profile spanning 17 years, this arrangement provides Golar LNG with a stable financial outlook. The transaction is contingent upon meeting closing conditions, including necessary documentation and third-party consents.

This innovative financing approach enables Golar LNG to manage its capital more efficiently. By securing a long-term leaseback facility, the company can focus on strategic growth initiatives while maintaining operational flexibility. The 12-year tenor and structured repayment plan offer both stability and predictability in managing future liabilities. Additionally, the inclusion of quarterly payments ensures a manageable cash flow impact throughout the lease period, aligning well with the company's broader financial goals.

Unlocking Capital Opportunities

Upon finalizing the deal and repaying the existing debt, Golar LNG expects to unlock substantial capital through net proceeds. These funds, estimated at around US$530 million, include the release of previous interest rate swaps. A significant portion of these proceeds, approximately US$371 million, will directly benefit Golar LNG, enhancing its financial position.

The infusion of capital from this transaction positions Golar LNG favorably for expansion and investment in emerging opportunities within the liquefied natural gas sector. By leveraging the proceeds, the company can enhance its fleet capabilities, explore new markets, and fortify its leadership in floating liquefaction solutions. Moreover, the additional liquidity strengthens Golar LNG's balance sheet, providing greater resilience against market fluctuations and enabling proactive engagement in high-potential ventures. This strategic move underscores Golar LNG's commitment to optimizing its financial resources while driving innovation in the industry.