HSBC Bank Egypt announced the closing of a USD50 million financing for IPR Petroleum. The facility will be used to refinance existing credit facilities, as well as the development and production of the company's oil and gas assets in Egypt.
IPR has been an active Exploration and Production player in Egypt for over 20 years where it operates various assets onshore in the Western Desert and offshore in the Gulf of Suez. IPR has an attractive portfolio of properties and prospects with significant upside potential which will be exploited over the next 4 years. IPR is involved in 6 Joint Venture Operating Companies with multinational partners and looks to grow this position through future acquisitions.
Sam Dabbous, Chief Operating Officer of IPR Petroleum said: "HSBC Bank Egypt has played a vital role in the success of the company in the past years, where the Bank has provided innovative financial solutions tailored to the company, in addition to excellent execution skills and capabilities, which makes us proud to be associated with HSBC Bank Egypt on the long-term."
Commenting on the Facility and IPR’s recent investments, Dabbous, reported that since 2006, IPR has invested approximately USD300 Million in the Egyptian energy sector including USD200 Million in the Western Desert and USD 100 Million in the Gulf of Suez. This included seismic programs, wells, facilities, platforms and pipelines.
Mr. Dabbous added: "Being able to secure this facility enhances our strong relationship with the Bank at this important time in Egypt. We expect that the facility will increase production and reserves. Hence, the value of the company to our shareholders. We affirm our commitment to the energy sector in light of the positive climate on the long term, and we look forward to our continued growth with the support of our partners who share our commitment and vision."
Helmy Ghazi, Head of Structured Finance at HSBC Bank Egypt said: "IPR reserve based lending facility is the third of its kind this year, which adds to the credibility of HSBC Bank Egypt in financing the Egyptian hydrocarbon industry, especially in the current difficult economic conditions."
"The oil and gas sector is one of the most strategic sectors that the Bank supports in Egypt, as it is considered the backbone of the Egyptian economy. We have an unparalleled track record of delivering truly bespoke products and insightful advice to Oil & Gas players ", added Helmy.