RLPC-Yemen LNG syndicates $2.64 bln project loan-bankers

LONDON, March 31 (Reuters) - The $2.64 billion financing backing Yemen's liquefied natural gas (LNG) project has launched to syndication, banking sources said on Monday.

French oil company Total (TOTF.PA: Quote, Profile, Research), is the main sponsor for the $4 billion liquefaction plant in the port of Balhaf on the southern coast of Yemen. It will be able to produce 6.7 million tonnes per year of LNG.

The project financing comprises a $1.44 billion senior limited recourse facility -- so-called because lenders are repaid from project cashflows and have limited recourse to the sponsors' balance sheets -- as well as a $1.2 billion loan that has a guarantee from Total.

The $1.44 billion facility is split between a $750 million bank-funded term loan, and three other bank-funded loans with guarantees from one of three export credit agencies -- Export-Import Bank of Korea (KEXIM), Nippon Export and Investment Insurance (NEXI) and France's Coface.

In addition, Japan Bank for International Co-operation (JBIC) and KEXIM are together expected to provide direct loans of $360 million.

The Coface loan totals $450 million, the KEXIM loan is $160 million and the NEXI tranche is $80 million. All three have a maturity of 15.75 years.

The $750 million, 11.75-year uncovered loan carries a margin of 165 basis points (bps) over LIBOR during construction and for three years post-construction, stepping up to 180 bps for the following three years and 210 bps thereafter, a banker said.

Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Citigroup, ING, Royal Bank of Scotland, Societe Generale and SMBC are initial mandated lead arrangers and bookrunners on the $1.44 billion and $1.2 billion facilities, with Calyon joining the lenders on the Total-guaranteed loan.

Yemen LNG has agreed three 20-year sales contracts for its output with Korea Gas Corp, Total Gas & Power and Suez LNG Trading.

As well as Total, the project is sponsored by U.S. Hunt Oil, Yemen Gas Co, SK Energy Co, Korea Gas Corp, the General Authority for Social Security and Pensions of Yemen and Hyundai. (Reporting by Christopher Mangham; Editing by David Hulmes)