Deeper understanding leads to better outcomes
19 Nov 2021
SMBC Leads Innovative ESG Finance Transaction for Cheniere Energy $1.25 Billion Revolving Credit Facility Refinancing
New York – November 19, 2021: SMBC, a member of SMBC Group, today announced that it has closed the refinancing of a $1.25 billion revolving credit facility for Cheniere Energy, Inc., the largest liquefied natural gas (LNG) provider in the U.S. SMBC acted as the sole ESG Coordinator and a Joint Lead Arranger on the transaction, which is the first loan transaction by a U.S. oil & gas company to include an ESG feature.
SMBC worked with Cheniere to develop an ESG feature that highlights Cheniere’s commitment to address greenhouse gas emissions throughout its value chain. This ESG feature supports Cheniere’s strategy to focus on developing a rigorous, scientifically informed understanding of greenhouse gas emissions associated with extraction, transportation, and liquefaction of natural gas, along with LNG shipping. This enhanced data on greenhouse gas emissions has the potential to support innovation and investment across the industry, with LNG expected to play a key role over the coming decades in energy security and transition across the world.
The ESG feature developed by SMBC and Cheniere highlights Cheniere’s strategy by allowing for reductions in financing costs based on a percentage of the amount invested by Cheniere in certain related programs, with a corresponding potential for increases in financing costs to the extent Cheniere fails to reach certain strategic milestones.
“We are very proud to have partnered with Cheniere on this innovative transaction. This transaction showcased the advantages of our relationship-centered approach to our clients and our ability to support their strategic goals by bringing together experts ranging from sustainable finance to project finance to loan capital markets,” said Aaron Franklin, Head of Sustainable Finance and Advisory at SMBC.
SMBC Group is committed to the sound development of society through its financial services. As a member of the Group, SMBC will continue to engage and act together with clients to contribute to the global transformation into a better society.
About SMBC Group
SMBC Group is a top-tier global financial group. Headquartered in Tokyo and with a 400-year history, SMBC Group offers a diverse range of financial services, including banking, leasing, securities, credit cards, and consumer finance. The Group has more than 140 offices and 86,000 employees worldwide in nearly 40 countries. Sumitomo Mitsui Financial Group, Inc. (SMFG) is the holding company of SMBC Group, which is one of the three largest banking groups in Japan. SMFG’s shares trade on the Tokyo, Nagoya, and New York (NYSE: SMFG) stock exchanges. As of June 30, 2021, its total assets were $2.11 trillion.
In the Americas, SMBC Group has a presence in the U.S., Canada, Mexico, Brazil, Chile, Colombia, and Peru. Backed by the capital strength of SMBC Group and the value of its relationships in Asia, the Group offers a range of commercial and investment banking services to its corporate, institutional, and municipal clients. It connects a diverse client base to local markets and the organization’s extensive global network. The Group’s operating companies in the Americas include Sumitomo Mitsui Banking Corporation (SMBC), SMBC Nikko Securities America, Inc., SMBC Capital Markets, Inc., SMBC Rail Services LLC, Manufacturers Bank, JRI America, Inc., SMBC Leasing and Finance, Inc., Banco Sumitomo Mitsui Brasileiro S.A., and Sumitomo Mitsui Finance and Leasing Co., Ltd.
Media Relations Contact:
Mina Takahashi
+1 212-756-5593
mina_takahashi@smbcgroup.com
SMBC worked with Cheniere to develop an ESG feature that highlights Cheniere’s commitment to address greenhouse gas emissions throughout its value chain. This ESG feature supports Cheniere’s strategy to focus on developing a rigorous, scientifically informed understanding of greenhouse gas emissions associated with extraction, transportation, and liquefaction of natural gas, along with LNG shipping. This enhanced data on greenhouse gas emissions has the potential to support innovation and investment across the industry, with LNG expected to play a key role over the coming decades in energy security and transition across the world.
The ESG feature developed by SMBC and Cheniere highlights Cheniere’s strategy by allowing for reductions in financing costs based on a percentage of the amount invested by Cheniere in certain related programs, with a corresponding potential for increases in financing costs to the extent Cheniere fails to reach certain strategic milestones.
“We are very proud to have partnered with Cheniere on this innovative transaction. This transaction showcased the advantages of our relationship-centered approach to our clients and our ability to support their strategic goals by bringing together experts ranging from sustainable finance to project finance to loan capital markets,” said Aaron Franklin, Head of Sustainable Finance and Advisory at SMBC.
SMBC Group is committed to the sound development of society through its financial services. As a member of the Group, SMBC will continue to engage and act together with clients to contribute to the global transformation into a better society.
About SMBC Group
SMBC Group is a top-tier global financial group. Headquartered in Tokyo and with a 400-year history, SMBC Group offers a diverse range of financial services, including banking, leasing, securities, credit cards, and consumer finance. The Group has more than 140 offices and 86,000 employees worldwide in nearly 40 countries. Sumitomo Mitsui Financial Group, Inc. (SMFG) is the holding company of SMBC Group, which is one of the three largest banking groups in Japan. SMFG’s shares trade on the Tokyo, Nagoya, and New York (NYSE: SMFG) stock exchanges. As of June 30, 2021, its total assets were $2.11 trillion.
In the Americas, SMBC Group has a presence in the U.S., Canada, Mexico, Brazil, Chile, Colombia, and Peru. Backed by the capital strength of SMBC Group and the value of its relationships in Asia, the Group offers a range of commercial and investment banking services to its corporate, institutional, and municipal clients. It connects a diverse client base to local markets and the organization’s extensive global network. The Group’s operating companies in the Americas include Sumitomo Mitsui Banking Corporation (SMBC), SMBC Nikko Securities America, Inc., SMBC Capital Markets, Inc., SMBC Rail Services LLC, Manufacturers Bank, JRI America, Inc., SMBC Leasing and Finance, Inc., Banco Sumitomo Mitsui Brasileiro S.A., and Sumitomo Mitsui Finance and Leasing Co., Ltd.
Media Relations Contact:
Mina Takahashi
+1 212-756-5593
mina_takahashi@smbcgroup.com