Asian funds buy US$1b in convertible bonds issued by LNG operator Cheniere Energy
Two Asian investment funds are buying US$1 billion in unsecured convertible bonds to be issued by Cheniere Energy, a Houston-based company specialising in liquefied natural gas, to fund the US firm's project in Texas.
Two Asian investment funds are buying US$1 billion in unsecured convertible bonds to be issued by Cheniere Energy, a Houston-based company specialising in liquefied natural gas, to fund the US firm's project in Texas.
Hong Kong and Singapore-based private equity firm RRJ Capital will subscribe to the bonds at an interest rate of 4.875 per cent per annum, maturing in 61/2 years.
RRJ would have the right to transfer some of the notes to Singapore sovereign investment fund Temasek Holdings and its subsidiaries, the company said.
The proceeds will finance part of the costs in developing the Corpus Christi liquefaction project in Corpus Christi Bay, on the Gulf of Mexico.
Cheniere expects the site to produce 13.5 million tonnes of LNG on completion. Construction of the plant will start early next year.
Cheniere owns and operates a LNG project in Texas and a natural gas pipeline in Louisiana.