Mol Nyrt., Hungary’s largest refiner, and its Croatian subsidiary INA Industrija Nafte d.d. are each seeking as much as 400 million euros ($533 million) of syndicated loans, according to two people with knowledge of the deal.
Mol has sent a so-called request for proposals to banks for a three-year revolving credit, which may include two one-year extension options, said the people, who asked not to be identified as the terms are private. INA is seeking a three-year term loan with the same opportunities to extend, they said.
Banks have been asked to reply to the requests by the end of the month, the people said. Syndication will be on a so-called club basis, an informal process that often includes the borrower.
Mol owns a controlling 49.1 percent stake in Croatia’s largest refiner, with the Croatian government the second-largest shareholder, according to the company’s first-half report.
“Mol continuously considers all financial options in order to maximally use favourable market conditions and diversify sources of funding, aiming at adjusting its business needs and ensuring flexibility,” the Budapest-based company said today in an e-mail.