A Lukoil subsidiary has secured a €420mn ECA-backed facility from a handful of European banks to upgrade its Bulgarian oil refinery.

The borrower, Lukoil Neftohim Burgas (LNB), will use the loan to fund the construction contract that it awarded to Italian energy contractor Technip to modernise the plant in Bourgas, Bulgaria.

The 10-year export credit facility, which is 95% covered by Italian ECA Sace, is being lead arranged and financed by Société Générale (which also acted as global co-ordinator), BNP Paribas (which also took on the role of facility agent), ING (environmental agent), and UniCredit (also Sace agent).