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Allen & Overy advised APICORP on two facilities for an aggregate value of USD250m

06 February 2020

Allen & Overy advised The Arab Petroleum Investments Corporation (APICORP), a multilateral development financial institution, on two facilities for an aggregate value of USD250m to Sonatrach Petroleum Investment Corporation (SPIC), a subsidiary of Sonatrach S.p.A., the Algerian state-owned national oil company.

The USD100m bilateral pre-financing facility is made available to fund the maintenance of the refinery of Sonatrach Raffineria Italiana in Sicily, Italy, which Sonatrach acquired from ExxonMobil in December 2018.

The USD150m unfunded and syndicated stand-by letters of credit facility is used for the purchase of crude oil by Sonatrach Raffineria Italiana from Saudi Aramco.

The refinery of Augusta is Sonatrach’s first investment in Europe. The integrated refinery complex, which has access to the major global shipping routes through the Mediterranean Sea, can produce a wide range of downstream products, including gasoline, distillates, fuel oils, lubricants, asphalts and chemicals.

Commenting on these transactions, Amine Bourabiat explains: "I am delighted that Allen & Overy can offer our first class expertise in cross border structure finance to support APICORP for the development of its member countries and the investments of Sonatrach. Additionally, this emphasises Allen & Overy’s historic focus on Algeria. These transactions arranged by APICORP reflect perfectly this approach"

Allen & Overy’s team was led by Paris partner Adrian Mellor and Amine Bourabiat, assisted by associate Aïda Lamrani Karim.

They coordinated the work of a multi-disciplinary and international team directed by partners Niels de Ru and Femke Bierman in Amsterdam and partner Stefano Sennhauser in Milan.

Bourabiat Associés advised on Algerian law matters.