Brazil’s Citepe Gets EUR Loans

Brazilian petrochemical company Cia Integrada Textil de Pernambuco (Citepe), a Petrobras subsidiary, has obtained 2 credit facilities for a total of EUR91m from lead arrangers Spain’s Banco Santander and Germany’s KfW IPEX Bank, according to a person on the deal. About EUR44m comes in the form of a buyers’ credit and the remainder is an export refinancing facility. The source says the loans have a tenor of 8 years and pay an interest rate based on Euribor. The credits are guaranteed by Petrobras and covered by export credit insurance from German export credit agency Euler Hermes Kreditverischerungs. Proceeds of the facilities will go to the construction of 2 plants, one producing PET chips and the other producing textile-grade semi-dull polyester polymers.