The loan will be paid to Petrotel Lukoil in two tranches. The IFC will provide $35 million from its own funds, and will obtain the remaining $47 million from a syndicate of private banks led by the Dutch bank ING.
"Engaging the IFC as a creditor and a fundraiser will make it possible for Lukoil to obtain 'long' money on competitive terms, something not available on the banking market," the press release said.
Petrotel Lukoil's 2003-2004 upgrading program, through which 18 old facilities were renovated and three new ones constructed, was aimed at improving the refinery's industrial efficiency and environmental safety. As a result, the degree of oil refining was extended by 7 percent points, to 95%, and the emission of pollutants was halved.
Before the end of 2005, the refinery will shift to Euro-3 and Euro-4 production standards, Lukoil's press release said.
