Kambourov & Partners advised HSBC and IFC on a $500 Million Financing for Petroceltic's Expansion

Kambourov & Partners served as the local counsel to HSBC Bank plc and advised on the establishment of the Bulgarian security package within a $300m bridge secured facility for the merger of two listed gas and oil exploration and production (E&P) companies - Petroceltic International Plc (Ireland) and Melrose Resources, Plc (UK).
After successfully completing the $300m transaction at the end of 2012, in February 2013, Kambourov & Partners was retained by HSBC Bank plc (as subcontractors to Wragge & Co. – main international legal counsel to HSBC Bank plc) to assist on the refinancing of the project, this time with the participation of the International Finance Corporation.
With a view to promoting the development of cleaner-burning natural gas for domestic use and export, IFC, a member of the World Bank Group, is financing Petroceltic International to expand the company’s operations in Egypt, Bulgaria and Algeria.
Along with HSBC, IFC arranged a debt facility of up to $500m to support Petroceltic’s investment program for the expansion of its production in Egypt and Bulgaria, as well as the company’s forthcoming development work in Algeria. Petroceltic is the only domestic producer of natural gas in Bulgaria, which imports about 85% of the country's gas supply.
As Lance Crist, IFC’s Global Head of Oil and Gas puts it the financing to Petroceltic "follows IFC’s strategy to support companies in emerging markets with strong management teams and assets that will provide local benefits to their host countries and expand the global supply of cleaner burning natural gas”.
Managing partner Vladimir Rangeloff, senior associate Yonko Hristov and associates Ivo Aleksandrov and Yordanka Bachvarova were engaged in the transaction on behalf of Kambourov & Partners.
The transaction was successfully concluded at the end of May 2013.