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Hogan Lovells Counsels PetroEcuador on Financing Package

25 January 2016

MIAMI, 25 January 2016 – A cross-border Hogan Lovells team advised PetroEcuador and the Ministry of Finance of Ecuador on the successful negotiation of a US$970 million credit facility with a consortium of banks, led by Industrial and Commercial Bank of China Limited, The Export-Import Bank of China, and China Minsheng Banking Corp., Ltd. Societe Generale and Deutsche Bank may also participate as lenders in a second phase of the transaction. During the negotiations, the structure of the facility was significantly changed to involve additional Chinese and European lenders, resulting in an intensive due diligence process.

In connection with the loan facility, PetroEcuador entered into a five-year crude oil sale and purchase contract with PetroChina International, under which PetroEcuador will sell crude oil to PetroChina at market prices during the five-year loan term. The transaction provides a significant source of liquidity for Ecuador on favorable terms, under difficult market circumstances due to low oil prices.

The Hogan Lovells team advising PetroEcuador and Ecuador included Miguel Zaldivar and Gaston Fernandez with support from Dana Turjman (Miami), Diego Carvajal (New York), Alejandra Rodriguez (Mexico City) and Aldo Nobili de Boni (Beijing).

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