The International Finance Corporation (IFC) and HSBC bank will arrange $500 million worth of financing for oil conglomerate Petroceltic International to expand its operations in Egypt, Bulgaria and Algeria, the IFC said in statement on Monday.
IFC, a member of the World Bank Group, along with HSBC are the lead arrangers for a debt facility of up to $500 million to promote the development of cleaner-burning natural gas for domestic use and export.
IFC will provide a $100 million loan from its own account along with up to $400 million from commercial banks.
The new facility will fund Petroceltic’s investment programme to expand production in Egypt and Bulgaria, and support the company’s forthcoming development work in Algeria.
“Our financing to Petroceltic follows IFC’s strategy to support companies in emerging markets with strong management teams and assets that will provide local benefits to their host countries and expand the global supply of cleaner-burning natural gas,” said Lance Crist, IFC’s Global Head of Oil and Gas.
Petroceltic started operating in Egypt in 1998 and owns three onshore concessions in the Nile Delta: Mansoura, South East Mansoura and Qantara. The company also has a 40 percent operating interest in a large frontier exploration concession in Mesaha, southern Egypt.