AfDB agrees $400 million loan to fund Mozambique's LNG

The African Development Bank (AfDB) has joined a global syndicate of banks and other financial institutions to provide financing for Mozambique’s $20 billion liquefied natural gas (LNG) project.

In an announcement on Tuesday, the regional development bank said it has concluded its bid to co-finance the project with a senior loan of $400 million.

The Mozambique LNG Area 1 Project, estimated to cost more than $20 billion, is ranked Africa’s single largest foreign direct investment to date.

Reuters reports that the project will consist of two LNG trains with a total capacity of around 13 million tons per year.

French energy major Total, the operator of the giant Mozambique LNG project, said on Friday it had signed a $14.9 billion senior debt agreement for the project, the biggest project financing ever in Africa.