Golar LNG Limited has announced the closing of a new $1.2bn asset-backed debt facility for the refinancing of its floating liquefied natural gas unit FLNG Gimi. The transaction was arranged with an international banking consortium including ABN AMRO, Citibank, DNB, Goldman Sachs and Standard Chartered Bank. This new facility replaces a previous loan with an outstanding balance of $627mn as of Q3 2025.
Extended and optimised financial terms
The new bank facility has a seven-year tenor with a sixteen-year amortisation profile. Interest is set at the Secured Overnight Financing Rate (SOFR) plus a 2.50% annual margin. Golar LNG stated that its 70% stake in the project enables it to recover approximately $400mn in net liquidity following repayment of the previous Gimi debt and the unwinding of the associated interest rate swap.
Renewed confidence from financial institutions
Golar LNG Chief Executive Officer Karl Fredrik Staubo highlighted the strong interest shown by leading banks in financing FLNG assets. He noted that the new terms are more favourable than the initial financing put in place when the Gimi unit was ordered. The debt-to-earnings before interest, taxes, depreciation and amortisation (EBITDA) ratio of around 5.5x reflects, according to the company, the bankability of Golar’s FLNG assets once operational under long-term contracts.
Strategic positioning in FLNG developments
FLNG Gimi is currently operating under a long-term contract, which enhances the project’s financial visibility. The refinancing transaction also enables Golar LNG to optimise its capital structure, increase financial flexibility and strengthen its ability to deploy resources for potential future developments. The company continues to pursue its strategy focused on the development of floating liquefaction infrastructure, a growing segment in the international energy market.
