European banks have agreed a US$200mn term loan facility for KMG International, a subsidiary of Kazakhstan’s state-owned KazMunayGas.

The mandated lead arrangers under the facility are Banca Comerciala Romana (BCR), ING, Raiffeisen Bank, Raiffeisen Bank International (RBI) and UniCredit Tiriac Bank, with Raiffeisen and RBI acting as syndicate co-ordinators. RBI is acting as facility agent.

The facility will be used to refinance KMGI’s existing debts. The company is 100% owned by KazMunayGas and its main operations involve the drilling, refining and sale of oil, as well as other services relating to the oil industry including exploration and transportation.