Milbank has advised the lenders and hedge counterparties on a further US$500 million term loan financing for Isramco Negev 2 LP (“Isramco”) in support of its share of the development of the Tamar gas field located off the coast of Israel. The Loan proceeds partially refinance the US$750 million bridge and term loans extended to Isramco in 2011 and also support future development and expansion of the field which became operational in March 2013.
The Tamar gas field is located off the coast of Israel and commenced operations in March 2013 after a 3 year development. Isramco is the largest local partner in the Project and owns a 28.5% stake in the Tamar gas field. The other investors are Noble Energy, Delek Drilling, Avner Oil and Gas and Alon Gas Exploration. The gross resource estimate of Tamar gas field is ten trillion cubic feet (Tcf).
This financing was arranged by Deutsche Bank, who also led the 2011 financings, and Natixis and was successfully syndicated to a large number of onshore and offshore financial institutions. Deutsche Bank has now arranged US$1.25 billion in debt financing for Isramco's share of the development of the Tamar offshore gas field since 2011. John Dewar, a partner in Milbank’s London project finance team, said that “the successful syndication of this prestigious and high-profile financing demonstrates the high level of investor confidence in the future prospects of the geopolitically important Tamar gas field”.
The team was led by John Dewar and included Oliver Irwin, Vicky Cox, Matthew Mortimer, John Goldfinch and Claire Hall in Milbank’s London Project Finance, Tax and Alternative Investment practices.
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