Poland’s state investment SPV to support Lotos Petrobaltic’s project
October 8, 2013
Lotos Petrobaltic, an E&E unit of fuel group Lotos, signed a financing agreement with Poland's investment SPV PIR for financing E&E works on Petrobaltic's B8 oil field on the Baltic Sea, with PIR’s contribution of PLN 563 million maximum, Lotos said in a market filing.
Of the total project outlays of around PLN 1.6 billion, Lotos Petrobaltic will contribute some PLN 700 million, while PIR and other financing parties will provide around PLN 900 million, the filing showed.
The financial engagement of PIR will not exceed PLN 563 million, sides agreed. The first tranche is to be paid out in H1 2014.
PIR will be acting as a mezzanine-type financing entity and its contribution will be subordinated to those of banks, the filing showed.