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Sace scrapes through
01 November 2002
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[project financing]
The oil and gas sector has provided the mainstay of Italian Export
Credit Agency (ECA), Sace's, project deals in recent years. Snam in
particular, the transportation division of Italian gas giant Eni,
has picked up some lucrative contracts for high profile projects.
Sace follows, most usually offering guarantees to commercial
lenders for political and sometimes commercial risks.
This year has seen Sace issue a guarantee on a $210 million
commercial tranche for Oman India Fertiliser Company (Omifco). The
agency has pledged 90% commercial cover and 95% political cover
from the start. Coface has covered a smaller tranche of $115
million. The Oman based plant has an offtake agreement in place
with the Government of India. Financial close, achieved in
mid-2002, was a long time coming.
A memorandum of understanding (MOU) was signed between the Indian
and Omani governments in 1994. Negotiations dragged on until 1999
without any real success and it...
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