Sonatrach secures funding arrangements

31 January 2003
State energy company Sonatrachhas signed framework agreements totalling Eur 3,200 million ($3,433 million) with eight European banks. The agreements, which cover the period between 2003-07, will be used to fund the purchase of equipment and services from Europe for use in Sonatrach projects. The framework agreements are expected to simplify funding arrangements and prevent lengthy payment delays.

The agreements provide for financing to be secured at a minimum price of 50 basis points over Libor. The exact terms of each deal will be negotiated separately. The agreements have been guaranteed by export credit agencies including Coface of France, Belgium's Ducroire and Hermes of Germany.

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