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NNPC Borrows $1.5B To Pay Foreign Fuel Importers

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SAN FRANCISCO, January 07, (THEWILL) – The Nigerian National Petroleum Corporation (NNPC) has sourced a $1.5 billion syndicated loan to enable it pay debts owed international fuel traders like Glencore, Trafigura and Vitol amongst others.

The loan was brokered by Standard Chartered Bank while the cash was provided by several Nigerian and foreign banks, with the NNPC putting up 15, 000 barrels of crude per day as collateral, according to Reuters which quoted a senior banking person as source for its news report.

The source further said the deal was sealed at the end of last year.

Nigeria has struggled to pay several fuel importers forcing some of them to stop shipments to Nigeria.

Reuters said Standard Chartered and the NNPC declined its requests for official comment.