The package is a blend of export credits and commercial debt. A $1,220 million export credits tranche will be covered by the Export-Import Bank of Korea and a number of European export credit agencies. The remainder of the debt will be a $525 million commercial facility.

Deutsche Bank was joined in the consortium by BNP Paribas, Commerzbank, ING, Kreditanstalt fuer Wiederaufbau, Natexis Banques Populaires and Societe Generale. Export-Import Bank of Korea is also acting as a direct lender. Deutsche Bank is continuing to seek financial institutions to join the group. The tenor of the loan has yet to be finalised.

The $1,750 million loan will cover 75 per cent of NIOC’s financial requirements for South Pars phases 9-10. A consortium comprising South Korea’s LG Engineering & Constructionand the local Oil Industries Engineering & Constructionand Iranian Offshore Engineering & Construction Companywas awarded the engineering, procurement and construction (EPC) contract on the project in September 2002 (MEED 20:9:02).