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CALGARY, Alberta, Aug. 15, 2018 (GLOBE NEWSWIRE) — Pieridae Energy Limited (PEA-TSXV) announced the appointment of KfW IPEX-Bank as an adviser in assisting it to finalize a multibillion USD untied loan guarantee from the German federal government under its UFK program (Garantien für ungebundene Finanzkredite).
In 2013, Pieridae received written confirmation on behalf of the German government that its proposed Goldboro LNG facility will qualify in principle under the UFK program for a guarantee of up to USD 3 billion of debt to be used to construct the Goldboro LNG facility provided that, among other things, at least 1.5 million metric tons per annum of liquefied natural gas (LNG) is delivered to Germany/Europe as contemplated by Pieridae’s 20-years (5 million metric tons per annum) offtake agreement with Uniper Global Commodities SE, an international energy company with its head office in Germany.
In July 2018, Pieridae applied to the German government to increase in the amount of the guarantee from USD 3 billion. The additional coverage will be used to develop natural gas reserves in both Western and Eastern Canada. Pieridae is currently negotiating a potential acquisition to utilize the funding.
Over the coming months Pieridae will launch the formal process to secure the required capital (equity and debt) to finance the integrated Goldboro LNG Project. To that end, KfW IPEX-Bank will work in close coordination with Morgan Stanley & Co, LLC (Morgan Stanley) and SG Americas Securities, LLC (Société Générale), each engaged as Pieridae’s global financial advisers.
“We are extremely happy with the addition of KfW IPEX-Bank to our team of financial advisers given their knowledge and expertise specific to the UFK program,” said Alfred Sorensen, CEO of Pieridae. “As we progress through our upstream acquisition and development plan toward a final investment decision (FID) on the Goldboro LNG Project, the support of the German government is of vital importance.”
In response, Michael Nosbüsch, Global Head Basic Industries of KfW IPEX-Bank, stated, “We are very pleased to have been retained as an adviser and are looking forward to contributing our experience and expertise to supporting Pieridae in this landmark project.”
About Pieridae Energy
Founded in 2011, Pieridae, a majority Canadian owned corporation based in Calgary, is focused on the development of integrated energy-related activities, from the exploration and extraction of natural gas to the development, construction and operation of the Goldboro LNG facility and the production of LNG for sale to Europe and other markets. Pieridae Energy is on the leading edge of the re-integration of the LNG value chain in North America. Pieridae Energy has 50,549,763 shares issued and outstanding which trade on the TSX Venture Exchange (PEA).
|For further information please contact:|
|Alfred Sorensen, Chief Executive Officer||Mario Racicot, Chief Financial Officer|
|Telephone: (418) 657-1966||Telephone: (418) 657-1966|