Petrom takes out EUR 930 mln revolving credit line

Newsroom 23/11/2011 | 13:57

Oil and gas producer Petrom has contracted a multi-currency revolving credit facility amounting to EUR 930 with a tenor of three years, and a two year extension possibility. This will replace the credit facilities of EUR 875 million that were taken out in 2008 and 2009, with maturity in 2012.

This new credit will be used for financing the current investments program and for other corporate operations.

“By extending the financing maturity we maintain our strong financial position in a highly volatile environment. We are the largest investor in the Romanian energy sector with annual investments of more than EUR 1 billion per year for the last six years; our investments weighed a considerable 3-4 percent of the total investments in Romania in 2010. Contracting this credit facility despite the challenging market environment confirms the banks’ confidence in our financial capabilities”, stated Daniel Turnheim, CFO Petrom.

The transaction saw BNP Paribas, BRD-Groupe Societe Generale, Citi, Raiffeisen bank International and Unicredit act as Book runners and Mandated Lead Arrangers. The bank syndicate includes 14 domestic and international lenders.

As of November 23, the unused committed facilities, which are available to the Petrom Group, amount to approximately EUR 1 billion.

Petrom has reported a net income of RON 2.9 billion in the first nine months of 2011, which is a 107 percent increase compared to the same period of 2010.

Ovidiu Posirca