Monday, July 27, 2009

Oltchim eyes 62 mln eur loan to buy Petrom assets

BUCHAREST, July 27 (Reuters) - Romanian chemical plant Oltchim (OLTC.BX) said on Monday it has approved plans to borrow 62 million euros ($88 million) to buy petrochemical assets owned by top oil and gas group Petrom (SNPP.BX).

"We approved contracting ... a loan worth 62 million euros with a 6-year maturity, which will be used to buy the petrochemical assets of Petrom's Arpechim Pitesti (refinery) ... and for working capital," Oltchim said in a statement.

About 80 percent of the loan, which was approved in a general shareholders meeting on Friday, will be guaranteed by the state-owned bank Eximbank.Oltchim works only at a third of its capacity since Petrom, majority owned by Austria's OMV (OMVV.VI), halted petrochemicals production. [ID:nLD225270] ($1=.7043 Euro) (Editing by Simon Jessop)

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