Oil firm’s deal is 30 per cent oversubscribed
The Egyptian General Petroleum Corporation (EGPC) has finalised a $900m loan after the deal was 30 per cent oversubscribed.
The deal is structured as a pre-export facility, where the banks provide financing to enable an exporter to sell products for which it has already arranged a buyer. The loan was arranged by Japan’s Bank of Tokyo Mitsubishi and the US’ Morgan Stanley.
Banks were invited to provide loans of $100m with fees of 150 basis points, and a margin of 350 basis points above the London interbank offered rate (Libor). The loan has a tenor of three-and-a-half years.
The company has borrowed from the markets several times in the past. The last time was in December 2008 when it borrowed $300m in a one-year deal arranged by France’s Calyon. EGPC is controlled by the Ministry of Petroleum.
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