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Sace scrapes through

01 November 2002

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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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