Largest loan in Albania granted by Raiffeisen

TIRANA, Nov. 2 – Raiffeisen Bank in Albania announced the signing of a loan agreement with Bankers Petroleum Albania Ltd. (Bankers Albania), to help support them in further developing a heavy oil field in central Albania. This is the largest debt facility granted in Albania by a local bank, with a cumulative value of $20 million. The signing parties were: Steven Grunerud, CEO of Raiffeisen Bank in Albania and Suneel Gupta, President of Bankers Petroleum Albania Ltd.
The debt facility is comprised of two parts: a $15 million term loan payable over five years and a $5 million revolving line of credit, both of which with commercial interest. The facility is secured by the assets of Bankers Petroleum Albania Ltd., the wholly-owned Albanian subsidiary of Bankers Petroleum Ltd, and by a guarantee by the parent company. The proceeds of the financing will be used to fund Bankers’ ongoing capital investment program in Albania.
“We are really happy to work with Bankers Petroleum in Albania. This proves that Albania is becoming a destination for foreign investment. The oil that Bankers is producing is both reducing the imports for Albania and developing additional exports that will contribute strongly to improving the balance of payments for the country. Raiffeisen is very excited to work with a company that is improving the future of Albania” said the CEO of the bank.
Bankers Petroleum Albania Ltd. is a company that has a 25 year concession to extract and process heavy crude oil in the Patos-Marinza oilfield. The company has been actively operating since July 2004 and has extensive experience in oilfield development. Currently, the company is producing approximately 4,200 barrels of oil per day (bopd). In the government approved Plan of Development for the oilfield, Bankers has been focused on a production scenario that relies on: improved pump technology; improved operation strategy; and on a production scheme which is new to Albania. This production method has proved successful in Canada and the company believes it will continue to have the same success in Albania.
Raiffeisen Bank in Albania is a leader in the credit market with a loan portfolio of more than 200 million euros and 90 operative branches throughout Albania. Raiffeisen International operates one of the leading banking networks in CEE with subsidiary banks and leasing companies in 16 markets. A fully consolidated subsidiary of Raiffeisen Zentralbank ׳terreich AG (RZB), it owns 70 per cent of the common stock. The remaining 30 per cent is traded on the Vienna Stock Exchange.
Bankers Petroleum Albania Ltd. is a wholly-owned subsidiary of Bankers Petroleum Ltd., a Canadian-based oil and gas exploration and production company focused on opportunities in unconventional petroleum assets. Bankers’ shares are traded on the Toronto Stock Exchange and the AIM Market in London, England under the ticker symbol BNK.