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Innovation In Action

For Peru LNG

Citi conducts an award-winning, landmark export finance transaction

The Challenge
Creating Peru LNG, that country's leading liquefied natural gas facility, required the largest direct foreign investment in Peruvian history - a USD3.9 billion partnership of Hunt Oil Company (U.S.), SK Energy (South Korea), Repsol YPF (Spain) and Marubeni (Japan).

Sealing the deal on this comprehensive and complex transaction - which included onshore and offshore account solutions - required a provider of corporate trust services with an innovative blend of experience, global reach, innovative ideas and superior service.

The Innovation
Managing complex transactions with flexible solutions is a core strength of Citi's Agency and Trust services. Citi acted as the onshore and offshore collateral agent, depositary and account trustee.

The project was financed via loans from a dozen providers around the globe as well as an upcoming bond issuance in the Peruvian market. The structure required the waterfall administration of onshore and offshore accounts, and a security package including multiple assets, trusts, accounts, inventory, equipment and equity.

Closing and disbursement requirements were no less sophisticated, requiring registration in Peru and the U.S., cross border collateral management for the initial disbursement, and processing large value transfers across the lenders' and borrower's onshore and offshore accounts in a tight time frame.

Citi's administrative responsibilities included execution of payments according to the overall deal structure, management of the electronic platform to control onshore and offshore accounts, coordination with the local bank and offering the flexibility to continuously add new key participants into the deal structure as required by the project.

The Result
This landmark deal was widely recognized by trade publications and won multiple awards, including: Best Energy Deal by Latin Finance, Latin American Deal of the Year by Project Finance International, Best Project Finance Deal of the Year by Latin Lawyer and Best Latin American Export Finance Deal of the Year by Project Finance.