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Latino Daily News

Wednesday April 20, 2011

U.S. Export-Import Bank Plans Multi-Billion Dollar Loan For Colombian Oil Refinery

U.S. Export-Import Bank Plans Multi-Billion Dollar Loan For Colombian Oil Refinery

Photo: Reficar oil refinery in Cartagena, Colombia

Click Here to Enlarge Photo

The U.S. Export-Import Bank is planning a loan for $2.84 billion for a project to expand and upgrade a Colombian oil refinery.

The bank, which is independent of the federal government, will give the money to Reficar, which is a Ecopetrol-owned subsidiary located in Cartagena, Colombia.

In a statement, the Export-Import bank said, ““This is part of a $5.18 billion refinery and upgrade project in Cartagena, Colombia supplying petroleum products to the domestic and export markets.”

This project will be the second largest the bank has ever done. It is only second to the $3 billion in financing used for a liquid natural gas project in Papua New Guinea.

Since December, the banks has approved roughly $880 million in additional loans and guarantees to the parent company, Ecopetrol, which means if the refinery loan is approved, Ecopetrol and its wholly owned subsidiaries will have received $3.72 billion in financing from this back in just five months.

“The Reficar transaction is subject to congressional notification, with a final vote anticipated approximately 35 days following the expiration of the notification period,” said the bank’s press release. Adding that “the transaction will help create or sustain over 15,000 American jobs for a total of four years.”