(EnergyAsia, October 18 2012, Thursday) — InterOil Corporation said it and its subsidiaries, EP InterOil and InterOil Limited, have secured a five-year US$100 million term loan facility with BNP Paribas Singapore (BNP), Bank South Pacific Limited (BSP), and Australia and New Zealand Banking Group (PNG) Limited (ANZ).
Borrowings under the facility will be used for repayment of an outstanding net US$25.4 million term loan granted by Overseas Private Investment Corporation (OPIC) in June 2001, and general corporate purposes.
InterOil secured the loan against its right, title and interest in the fixed assets of the Napa Napa Refinery in Papua New Guinea at LIBOR plus 6.5%.
The company said the Bank of Papua New Guinea has approved the deal, while funding is subject to release by OPIC of all securities under the existing loan agreement, and other standard closing conditions.
Collin Visaggio, InterOil’s CFO, said:
“We are delighted to have extended our banking relationship with BNP which has led our existing US$240 million working capital facility since 2005, and strengthened our existing relationship with BSP, Papua New Guinea’s largest bank, and ANZ, one of the region’s largest lenders.
“This financing should allow us to maintain our accelerated pace of upstream activity while we complete our negotiations with the PNG state and conclude our LNG partnering process. At this stage, we are pleased by the constructive dialogue with the state and the increased interest in investment in Papua New Guinea following the successful election and formation of the strongest coalition government in the country’s history.”
Ian Clyne, BSP Group CEO, said:
“We are proud as a Papua New Guinea bank to be involved as co-lead arranger of this international syndication, and being able to strengthen our partnership with InterOil, one of PNGs leading organisations. InterOil and BSP, are committed to this emerging nation and its local communities.”
Mark Baker, ANZ CEO PNG said: “InterOil has been a long and valued relationship of ANZ. As an international bank with a 100-year presence in PNG and an extensive network across Asia Pacific, we are focused on providing international financial expertise and regional specialists to support the development of key industries in PNG for the benefit of our clients and the wider community.”
Pierre Joseph Costa, BNP Paribas’ Regional Head for Structured Finance APAC and Japan, said:
“We are proud to be part of the changing landscape in PNG, and this loan marks a further commitment of the Bank’s relationship with InterOil, whom we have been partnering with since 2005.”
InterOil Corporation is developing a vertically integrated energy business whose primary focus is Papua New Guinea and the surrounding region. InterOil’s assets consist of petroleum licenses covering about 3.9 million acres, an oil refinery, and retail and commercial distribution facilities, all located in Papua New Guinea.
The company is also a shareholder in a joint venture established to construct an LNG plant in Papua New Guinea.