British Firm Secures $18 Million Loan for Moroccan Gas Project

In a press release, ​Sound Energy announced that on December 24, it had concluded agreements with Afriquia Gaz regarding a $18 million (167 million dirhams) loan financing for the first phase of Tendrara LNG maturing in December 2033. At a rate of 6%, this loan is secured on the share capital of Sound Energy Meridja Limited, a subsidiary of Sound Energy in Morocco, can be used by the company in full or in tranches over a three-year period from December 24, 2021, and will be allocated to the development of the Tendrara production concession, it is specified.

Sound Energy will pay the interest quarterly, but they will be deferred and capitalized semi-annually until the second anniversary of the conclusion of the loan agreements, then annually in equal installments from 7 years from the date of signing the loan agreements. "The conditions precedent to the loan include a project contract with Italfluid Geoenergy Srl (Italfluid) for the supply of a gas treatment and liquefaction plant related to the development of phase 1."

"We are delighted to have executed all the documentation relating to the loan note which ensures that Sound Energy will be fully funded for its share of the phase 1 development capital. This is a key milestone for the company and we will now move to issuing the notice to proceed to Italfluid and drawing the initial loan financing from Afriquia Gaz in order to proceed with the execution of phase 1 of the development," says Graham Lyon, Executive Chairman of Sound Energy.