After a difficult gestation, a major project finance loan for Qatar's National Oil Distribution Company (Nodco) is to be signed on 23-24 November. Lead arranger Barclays Capital finally managed to close the deal after reducing both the total amount and the tenor, and adjusting the pricing formula to allow for an increase in the margin after the project's completion (MEED 20:11:98).

The loan is for $510 million, down from an original $850 million, and has a maximum maturity of nine years, down from 13. The loan carries a margin of 55 basis points over Libor until project completion, increasing to a maximum 85 points thereafter.

Barclays says that, working closely with main contractor Lurgi of Germany, it assembled a 13-strong syndicate drawn from Lurgi's house bank group and key relationship banks of Nodco and its parent, Qatar General Petroleum Corporation.

The project involves doubling capacity at Nodco's refinery to 137,000 barrels a day. Lurgi is working in a consortium with South Korea's LG Engineering Company and LG International Corporation.