Petroterminal de Panama Pipeline, Storage Financing Closed
10-27-2009 | Source: Project Finance
Northville Industries, the government of Panama and
Castor Petroleum have closed a $480 million refinancing and expansion financing for the
Petroterminal de Panama oil pipeline and storage project. The deal refinances an interim financing from November 2008, and increases the storage capacity of the project.
The debt component of the financing is a $375 million 8.5-year loan led by financial adviser
HSBC,
EDC,
Banco General,
BNP Paribas and
Banco Nacional de Chile. The financing was sold down to several tiers in a process that almost resembled a syndication. It demonstrates two things: that Panamanian and Central American banks are again open to project risk, and
BP has an unrivalled ability to help close project financings even when it is not a sponsor.
Petroterminal de Panama owns a 131km oil pipeline running across the Panamanian isthmus, connecting the Atlantic and Pacific Oceans. Running north-south across the west of the country, it terminates at Puerto...
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