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PetroTal Provides Additional Details on $65 Million Term Loan to Finance Erosion Control Investments at Bretana
Calgary, Alberta and Houston, Texas--(Newsfile Corp. - May 13, 2025) - Further to its announcemen...
About this update from Petrotal Corp.
[{"type":"text","content":"PetroTal Provides Additional Details on $65 Million Term Loan to Finance Erosion Control Investments at BretanaCalgary, Alberta and Houston, Texas--(Newsfile Corp. - May 13, 2025) - Further to its announcement on May 12, 2025, PetroTal Corp. (TSX: TAL) (AIM: PTAL) (OTCQX: PTALF) (\"PetroTal\" or the \"Company\") is pleased to provided additional details on the syndicated term loan facility it has entered into with Banco Interamericano de Finanzas (\"BanBif\") and Corporacion Financiera de Desarrollo (\"COFIDE\"), the Development Bank of Peru. All amounts are in US dollars unless stated otherwise.Key HighlightsThe Term Loan has been established for the purpose of financing PetroTal's ongoing investments in erosion control infrastructure in the vicinity of the Bretana oil field; for the common benefit of the operations and the community;Drawable in two tranches ($50 million and $15 million), with total commitments of up to $65 million, for a 4-year amortizing term; Fixed annual percentage rate of 8.65%, with manageable covenants and no material restrictions on distributions to shareholders - highly competitive terms in a challenging macro environment; andThis is COFIDE's first loan focused on environmental and social financing in Peru's extractive resource sector. PetroTal's long-standing commitment to the district of Puinahua, and the permanent benefits of the erosion control project for the village of Bretana, were key factors in the Company's ability to secure the credit facility.Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer of PetroTal, commented:\"We are very happy to work with BanBif and COFIDE on this credit facility. Since PetroTal began operations in 2017, our stakeholders in the district of Puinahua have been integral to the success of our Company. Our ongoing commitment to the residents of Puinahua has been evidenced by the establishment of the 2.5% social fund, through which we have now returned a total of $21 million to the district. The erosion control project, which will benefit the village of Bretana for decades to come, is a continuation of our commitment to the region.\"Camilo McAllister, Executive Vice President and Chief Financial Officer of PetroTal, commented:\"PetroTal has evaluated a number of options to finance our ongoing investments in erosion control, and we are pleased to have fou...