Bharat Petroleum and Oman Oil JV Said to Seek $140 Million Loan

Bharat Oman Refineries Ltd. (BORL), a joint venture between Bharat Petroleum Corp. and Oman Oil Co., hired Deutsche Bank AG to arrange a $140 million, eight-year loan, according to a person familiar with the matter.

The loan pays a margin of 345 basis points over the London interbank offered rate and a fee of 1.5 percent for commitments of $25 million or more, the person said, asking not to be identified because the details are private. The facility, which has been in syndication for about three weeks, has attracted about $175 million in pledges so far from six banks, the person said. The loan is guaranteed by Bharat Petroleum.

Bharat Petroleum finance director S. Varadarajan didn’t answer two calls to his mobile phone seeking comment on the financing.

To contact the reporter on this story: Wendy Mock in Hong Kong at wmock3@bloomberg.net

To contact the editor responsible for this story: Katrina Nicholas at knicholas2@bloomberg.net