Petrominerales Ltd. (PMG.TO), Ecopetrol and Pacific Rubiales Energy Corp. announced that Oleoducto Bicentenario S.A. has closed a debt facility for about US$1.200 billion, the equivalent of COP$2.1 billion.
The loan has been provided by a syndicate of ten Colombian Banks. Bicentenario is a special-purpose vehicle owned 55,97% by Ecopetrol S.A., 32,88 % by Pacific Rubiales Energy, 9,65% by Petrominerales, and the remainder owned by other E&P companies operating in Colombia.
The credit facility will be drawn down by Bicentenario mainly for the certain purposes: (i) Advanced payment of part or total of the subordinated shareholders loans (ii) to finalize the completion of Phase 1 of the project (iii) working capital financial costs and (iv) general costs and expenses.
The company stated that the facility has an interest rate of DTF + 4.54%, a maturity of 12 years with a 1 year grace period. The loan is non-recourse to the sponsors. Bicentenario shareholders will be signing ship- or -pay contracts for the transportation of their own production.
The company noted that the facility ensures funding for the completion of Phase 1 of the Bicentenario pipeline project.
Phase 1 of the project is expected to be operational in the fourth quarter of 2012. Phase 1 will connect the Los Llanos prolific oil basin to the Cano Limon Colombian oil transportation system and on to the Port of Covenas.
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