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Abu Dhabi Commercial Bank (ADCB) has extended a five-year USD 60 mn loan to Swedish Tethys Oil, according to a disclosure. The funds will be used to support Tethys’ expenditures in its Block 3 & 4 in Oman, which will also serve as collateral for the debt facility.
The details: The loan features a 12-month drawdown availability period, with a fixed amortization schedule starting nine months after entering the agreement. The loan is expected to carry single-digit interest, to be paid quarterly. Under the agreement, Tethys Oil will hedge at least 50% of the interest rates and 35% of its oil sales.
The loan will help Tethys ramp up its investments, “[ensuring] that [the company] is fully funded and positioned to continue investing across its portfolio of assets in various stages of maturity. [The facility] provides Tethys Oil’s Board of Directors additional flexibility and optionality in the Group’s ongoing strategic review,” the disclosure reads.
ADVISOR: UK-based Carlingford, a division of GFI Securities, arranged the transaction.
