Mitsubishi Corp to provide $1.4 billion to Chiyoda Corp eyeing increased global demand for LNG

Chiyoda is one of the world’s top builders of liquefied natural gas (LNG) plants. With increased global demand for LNG, the plant engineering firm’s fortunes potentially has a bright future.

On Monday, as per a report from the Nikkei newspaper, MUFG Bank along with Japanese trading house Mitsubishi Corp plan on rescuing Chiyoda Corp, an engineering company with a lifeline of $1.4 billion as they expect the financing is likely to help it achieve a turnaround given a significant rise in demand for LNG.

Incidentally, Chiyoda is one of the world’s top builders of liquefied natural gas (LNG) plants. The company was straddled with losses after a hurricane hit its Cameron LNG project in Louisiana.

The power industry across the globe is seeing a strategic shift in demand from coal to LNG. Royal Dutch Shell has forecast the global LNG trade to rise by 11% to 354 million tonnes in 2019.

Mitsubishi, has already twice bailed out Chiyoda. The company has a 33.4% stake in the engineering firm. It will provide the bulk of the $1.36 billion (150 billion yen) financing through a mix of private placement of new preferred shares along with loans, said the Nikkei, without citing sources.

MUFG Bank, a part of Mitsubishi UFJ Financial Group, will provide additional financing, it said.

According to Chiyoda, financing talks are on-going and a decision has yet to be arrived at. It also disclosed that its full-year loss is likely to be bigger than it previously forecast.


Categories: Creativity, Economy & Finance, Entrepreneurship, HR & Organization, Strategy, Sustainability

Tags: , , , , , , , , , , , , , , , , , , , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: