Cairo, Egypt, April 15, 2013—IFC, a member of the World Bank Group, is financing Petroceltic International to expand the company’s operations in Egypt, Bulgaria, and Algeria to promote the development of cleaner-burning natural gas for domestic use and export.
IFC is co-lead arranger, along with HSBC, for a debt facility of up to $500 million to fund Petroceltic’s investment program to expand production in Egypt and Bulgaria, and support the company’s forthcoming development work in Algeria. IFC is providing a $100 million loan for its own account along with up to $400 million from commercial banks.
“IFC has drawn on its deep experience and relationships in emerging markets to arrange a finance package that includes several new banks for our company,” said Petroceltic CEO, Brian O’Cathain. “With its financing, IFC has been able to provide comfort to other lenders looking to support our work in the region.”
Petroceltic is having a positive impact in its core markets. The company is the only domestic producer of natural gas in Bulgaria, which imports about 85 percent of its gas supply. In Egypt, domestic gas production is declining, potentially falling short of the country’s growing energy demand. In Algeria, the success of the company’s exploration and appraisal activities is sending a positive signal to other junior oil and gas companies seeking to invest in the country.
“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.
IFC, a member of the World Bank Group is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit www.ifc.org.
About Petroceltic International
Petroceltic International plc is a leading Upstream Oil and Gas Exploration and Production Company, focused on the Middle East & North Africa (MENA), the Mediterranean basin and the Black Sea. Petroceltic is headquartered in Dublin (Ireland) with offices in Edinburgh, Algiers, Cairo, Varna and Rome and is listed on the London Stock Exchange’s AIM Market and the Irish Stock Exchange’s ESM Market. The Company has production, exploration and development assets in Algeria, Bulgaria, Egypt, the Kurdistan Region of Iraq, Italy and Romania. For more information, visit www.petroceltic.com