LONDON, May 14 (Reuters) - Portuguese fuel and oil company Galp Energia (GALP.LS) has completed a 700 million euro syndicated loan, banking sources said on Thursday.
Galp was originally seeking a 500 million euro loan, but increased the loan to 700 million euros after raising 1 billion euros in the market, a banker close to the deal said.
The result is an encouraging sign that liquidity is returning to Europe’s syndicated loan market, he added.
The four-year loan was not underwritten and was arranged on a bookbuild basis by Santander and Caixa Banco de Investimento and attracted support from 14 domestic and international banks, the banker said.
The loan’s all-in pricing, including interest margin and fees, was 310-410 basis points over EURIBOR, he added.
Galp recently completed a separate 500 million euro loan with the European Investment Bank in mid-March as part of a 1.3 billion euro project to refurbish two refineries and has received 300 million of the facility to date.
Reporting by Tessa Walsh; editing by Elaine Hardcastle