- Associated Press - Thursday, March 29, 2018

ANCHORAGE, Alaska (AP) - The Alaska Gasline Development Corp. has secured two of the world’s largest banks to help raise funds for the $43 billion Alaska LNG Project.

Goldman Sachs and the Bank of China will assist the corporation in raising multiple rounds of debt and equity investment, the Alaska Journal of Commerce reported Wednesday.

Equity offerings will be made to Alaska municipalities, Native corporations and all Alaska residents in addition to more traditional private equity investors, as required by the Senate bill that in 2014 set up the initial framework for the project.

Goldman Sachs Managing Director Kevin Willens said he is pleased the bank is working with the corporation and the Bank of China on the project.

Meyer has said he hopes to have firm agreements in place with the Chinese companies by the middle of the year.



The nationalized Bank of China is one of three large Chinese companies to sign a nonbinding framework deal with the corporation last November that in broad terms exchanges 75 percent of the project’s 20 million tons per annum of LNG capacity for financing 75 percent of the $43 billion Alaska LNG price tag.

“Joint development agreement parties are advancing the economic analysis of the project in order to lay (a) more solid foundation for investment and financing,” the Bank of China said in a statement.

The first rounds of equity solicitation will be used to provide working capital for the corporation until it has secured sufficient funding and regulatory approvals for full-scale development.

The Legislature must first give the go-ahead before the corporation can accept any money from outside investors.

Gov. Bill Walker’s fiscal year 2019 state budget proposal included language allowing the corporation to accept unlimited third-party funds but the House Finance Committee limited the corporation’s receipt authority to $1 billion per year. Such receipt authority is required for state corporations to accept non-state money.

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Information from: (Anchorage) Alaska Journal of Commerce, http://www.alaskajournal.com

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