ICBC provides $60 million pre-export finance (PXF) facility to PetroRio

📋 Staff Comments

1. For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.
2. A pre-export finance (PXF) facility is an arrangement in which a commodity producer gets up-front cash from a customer in return for a promise to repay the customer with that commodity (possibly at a discount) in the future. PXF funds may be advanced by a lender or syndicate of lenders to a commodity producer to assist the company in meeting either its working capital needs (for example, to cover the purchase of raw materials and costs associated with processing, storage and transport) or its capital investment needs (for example, investment in plant and machinery and other elements of infrastructure). PXF facilities are usually secured by (1) an assignment of rights by the producer under an ‘offtake contract’ (i.e., a sale and purchase contract between the producer and a buyer of that producer of goods or commodities), and (2) a collection account charge over a bank account into which proceeds due to the producer from the buyer of the goods or commodities under the offtake contract are credited. There are two key documents in prepayment finance transactions: a contract providing for the advance payment by the offtaker to the producer for the purchase of goods/commodities (the 'Prepayment Contract'), and a loan agreement between a lender and the offtaker (the 'Offtaker Loan Agreement') under which the advance payment is financed.
3. The China-Latin America Commercial Loans Tracker, which is produced by the Inter-American Dialogue, does not capture this loan.

📚 Sources & References

• PetroRio set for Phase 3 of Polvo field revitalization plan
• PETRORIO IS LOOKING FOR NEW FINANCIAL FONTS TO GROW
• PetroRio estima custo de até US$60 mi com campanha de perfuração em 2019
• Milbank Advises on Oil Export Financing in Brazil
• Petro Rio S.A. Declares New Drilling Campaign and Funding
• PetroRio set for Phase 3 of Polvo field revitalization plan
• Aled Davies
• MATERIAL FACT NEW DRILLING CAMPAIGN AND FUNDING
• Individual and consolidated financial statements for the years ended December 31, 2018 and 2019 and Independent auditors' report.
• PetroRio funds Polvo field © 2022 Latin American Financial Publications
• Inc. This text was copied at 4:45:43 PM on 08/08/2022. Additional copying of this piece is not authorized. Copyright policy: https://www.latinfinance.com/pages/copyright-policy
• IMPORTANT NOTICE
• Polvo Field Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.