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A subsidiary of Sweden-based Tethys Oil has signed an agreement for $60 million amortising term loan facility with the UAE's Abu Dhabi Commercial Bank.
The loan will have a 12-month availability period and a fixed amortisation schedule commencing nine months upon entering the agreement.
The loan will support Tethys Oil Block 3&4 Ltd.'s capital expenditure for Blocks 3&4 in Oman, which also acts as the collateral for the loan.
The Nasdaq Stockholm-listed Thethys Oil's core area of operations is in Oman, where it holds interests in Blocks 3&4, Block 49, Block 56 and Block 58.
The loans drawn under the facility are under current conditions expected to carry a single-digit interest, payable quarterly.
As part of the agreement, Tethys Oil also commits to hedging at least 50% of its interest rates and an average of 35% of its oil sales.
The transaction was arranged by the UK-based Carlingford, a division of GFI Securities, and is subject to customary covenants for this type of facility.
(Writing by Brinda Darasha; editing by Seban Scaria)
