Exxon Mobil Financing Options

1. EM as the single sponsor $3723 million (considering a private financing

structure, and with AAA rating to Exxon, can take up debt to support the
project)
2. EM with 3 corporate sponsor - $1489.2 (40% of 3723 ) (With at AA- , the
consortium can raise debt, upto any level it requires for the project)
[using a numerical scale mode, one can arrive at a synthetic rating of
AA-)

3. CF and PF - 883 as the equity

4. 100% PF with D/V 60% - 595.68 million (considering Exxons Share as 40%)

Does it make sense for the sponsors who own the Field system to also own the
Export system?
Export system is risky because multiple sponsors, the government. Project
Finance allows it to spread the political risk
Why does Exxon Mobil want to use Project financing for this deal? [Analyze the options (from your
calculations in the all group assignment) for Exxon Mobil and explain why it preferred to use Project
financing]

What is the World Banks role in the project? Are they likely to be successful?
Social Development