The International Finance Corp. signed a $520-million financing agreement with Pan American Energy to help the Buenos Aries oil and gas producer develop its resources to help meet Argentina’s rising energy needs.
Pan American, which is Argentina’s second largest producer, will use the money in its $1.5-billion expansion program in the Cerro Dragon block in the San Jorge Gulf off southern Patagonia and the Lindero Atravesado block in Neuquen, the World Bank Group member said.
IFC said it also is working with Pan American, which represents 17% of Argentina’s hydrocarbon production, to strengthen its environmental and social management. The company has been an IFC client for more than 20 years.
The financing package consists of $120 million from IFC and $400 million it raised from commercial banks and financial institutions, including ICBC, Banco Itau BBA, Natixis, Credit Agricole, Banco Santander, Banco Bilbao Vizcaya Argentaria, and Banco Latinoamericano de Comercio Exterior.
IFC said its loans extend to 7 years, a long loan maturity in Argentina’s financial markets.
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