Deal will be first big loan from Middle East in 2010
State-owned Egyptian General Petroleum Corporation has appointed banks to arrange up to $2bn of pre-export financing, where the banks provide financing to enable an exporter to sell products for which it has already arranged a buyer.
The US’ Morgan Stanley and Bank of Tokyo Mitsubishi have been appointed to raise the facility, which follows a similar $900m pre-export deal launched into the market in August 2009.
That deal paid 350 basis points above the London interbank offered rate (Libor). Bankers say the new facility is likely to be priced under 300 basis points above Libor as a result of the improving global markets. 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.
Banks have until 18 January to make funding offers for the deal, which was launched into the bank market in mid-December.
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