PERU LNG 2021 Annual Report
ANNUAL REPORT
PERU LNG 2021
CHAPTER 4
OUR ORGANIZATION
DURING THE FIRST QUARTER OF 2021
THE COMPANY RENEWED ITS WORKING
CAPITAL FINANCING AGREEMENT FOR
USD 40 000 000, CONSIDERED TO BE A
REASONABLE AMOUNT TO COVER ITS
FINANCING NEEDS.
As at the 31st of December 2021, the new balance owed
was USD 940 000 000, resulting from the international
bond issue described above.
In compliance with the six-monthly payment schedule,
March and September 2020 saw the sixth and seventh
interest coupon payments of USD 25 262 500 each. The
next payment is scheduled for March 2022.
As far as the credit ratings of PERU LNG are concerned,
in August 2021 the Company received reports from
ratings agencies Fitch & Moody's. PERU LNG's rating
was modified because of operating results below market
expectations, as well as force majeure events that
stopped the plant in the second and third quarters of
2021. As a result, Fitch reduced the company's rating
from "BB-” to “B+”, with a negative outlook; whilst
Moody's reduced its rating from “B1” to "B3", with a
negative outlook.
GEAHITA
Working capital
On the 7th of March 2018, PERU LNG entered into a Working
Capital Financing Agreement with Bank Guarantees,
with the Banco de Credito del Peru (BCP) valued at
USD 75 000 000 over a three-year period. This line includes
letters of guarantee and letters of credit, in addition to
short-term disbursements. Capital disbursements have a
maximum term of 12 twelve months.
During the first quarter of 2021 the company
renewed its working capital financing agreement for
USD 40 000 000, considered to be a reasonable amount to
cover its financing needs. The agreement charges interest at
the Libor 12 month rate + 1.90% and expires in March 2023.
This line of credit includes a collateral guarantee in cash
amounting to 50% of total working capital, which is USD 20
000 000 and is shown in the statement of financial position
as restricted cash.
As at the 31st December 2021 the company had used 100
% of the line of credit in the form of USD 22 000 000 in
cash and a deposit of USD 20 000 000 of restricted cash
as collateral guarantee for the issue of a letter of guarantee
for USD 17 100 000 in favour of Transportadora de Gas del
Peru (TGP) and the use of 100 % of the credit line.
Furthermore, on the 24th January 2022, a new addendum
to the agreement was entered into extending its validity to
the 31st May 2023.
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