Egyptian Petroleum approaches banks for $2bn loan

05 May 2010

State oil firm launches $2bn export financing deal

Egyptian General Petroleum (EGPC) has started contacting banks to request financing for its $2bn pre-export financing.

Banks are understood to have been asked to commit $150m each to the deal, which is being lead by US’ JP Morgan and National Bank of Egypt.

The two banks were appointed by EGPC in April, after the company invited banks to pitch for the deal in late December 2009.

The loan involves banks providing finance to enable the company to sell its products overseas in cases where it has already arranged a buyer.

The US’ Morgan Stanley and Bank of Tokyo Mitsubishi have been appointed to advise on raising the facility, which follows a similar $900m pre-export deal launched in the market in August 2009.

The new deal will have a tenor of five years and is secured against naptha exports, whereas the 2009 deal was secured against crude oil exports.

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