€20m Term Loan and €30m Letter of Credit

Advised abrdn on the refinancing of their c.20% stake in Noordgastransport B.V (“NGT”), a gas processing plant and network of gas pipelines on the Dutch Continental Shelf.

IDCM managed the process with the Reserve Consultant, to establish bankable volume forecasts, focussing on existing Producing and Near-Term Development volumes.

IDCM adapted an existing internal abrdn model and converted it to a fully audited and bankable transaction financial model.

In spite of challenging market conditions, including lender ESG realignment away from hydrocarbon assets, as well as reputational and sanction concerns due to partial Russian ownership of certain gas fields that use the pipeline in the wake of the Ukraine conflict, IDCM was able to identify potential lenders with appetite for the transaction.

In addition, IDCM also managed the full prepayment and swap breakage of existing senior and junior debt facilities.

To minimise trapped cash at the borrower level, IDCM successfully negotiated the inclusion of a DSRF, rather than a DSRA. The lender also provided a €30m LC which was necessary to allow upstreaming of cash to the Shareholder.