“This facility, which follows on the success of last year’s RCF, was substantially oversubscribed by more than 180 percent from the initial launch amount of $900 million with Jeragm choosing to scale back lender commitments,” Jeragm said in a statement.
Thirty financial institutions participated in the transaction, which included 10 new lenders.
Moreover, Jeragm said the facility will be used for general corporate purposes, including the company’s global LNG trading business, which operates a diverse portfolio.
“This facility enhances our ability to pursue strategic growth initiatives even as we continue our focus on delivering robust shareholder returns,” said Justin Rowland, CEO of Jeragm.
Rowland said the commitment from 30 banks reflects “strong support from Jera Global Markets’ network of financial partners across this region and the Middle East.”
Jeragm’s LNG trading business
Last year, Jeragm appointed Rowland as its new CEO.
Rowland joined Jeragm in 2019 from EDF Trading, where he spent 18 years in various leadership positions, including chief finance and risk officer.
Jera, a joint venture of Tepco and Chubu Electric, owns 66.67 percent of Jeragm, while EDF Trading, a unit of French state-controlled utility EDF, holds the rest.
In April 2019, Jera and EDF Trading merged their LNG trading and optimization activities.
Last year, Jeragm boosted the size of its chartered fleet of LNG carriers by adding a newbuild vessel owned by Greece’s Alpha Gas.
The firm has a fleet of 18 carriers supporting its global trading operations.
Jeragm also agreed last year to buy LNG from UAE’s Adnoc Gas, a unit of Adnoc.
Jeragm manages and operates third-party supply agreements from Australia, Southeast Asia, the Middle East, and the US Gulf and optimizes term contracts on behalf of Jera and EDF Trading.
According to its website, its gross executed LNG trade volume reached about 46 million tons in fiscal 2023.
Earlier this year, Jera said it plans to invest 1-2 trillion yen ($6.75-$13.5 billion) in its LNG business by fiscal 2035.
Jera targets more than 35 million tons of LNG transaction volume, aims to achieve 20 GW (gigawatts) of renewable capacity, and targets about 7 million tons of hydrogen and ammonia handling volume by fiscal 2035.
