DEUTSCHE BANK TO PROVIDE EUR 1BN LOAN TO BOTAS
BOTAS Petroleum Pipeline Corporation and Deutsche Bank AG are in the final stages of talks for a pioneering EUR 1bn (USD 1.1bn) loan to finance liquefied natural gas (LNG) purchases, according to Bloomberg News. The transaction marks the company ’s first loan for LNG imports and paves the way for similar deals to enable the diversification of energy supplies. BOTAS will use the money to buy LNG from U.S. producers and traders in Europe. The loan guaranteed by the Treasury and Finance Ministry is expected to have a maturity of as long as five years and may be doubled later said those participating in the confidential talks. At current LNG prices, the funding could purchase about 1 billion cubic meters of gas, a small fraction of the more than 61 billion cubic meters Turkey consumed last year. Deutsche Bank, BOTAS, and the Treasury declined to comment.