Poland's PGNiG Unit Secures $400 mln Loan

An upstream unit of Poland's gas company PGNiG signed a loan agreement with banks worth $400 million, which will mostly serve to pay back a bulk of the unit's current debt, PGNiG said on Thursday.

PGNiG Upstream International signed the 7-years deal with eight banks, including Societe Generale (SGE.SG), BNP Paribas, ING, HSBC and Citibank.

The loan agreement will help the unit develop its upstream projects in Norway. It will also allow it to pay back around 1.3 billion zlotys ($345.5 million) to its parent company PGNiG in August, curbing its financial costs.

PGNiG Upstream's total production capacities amount at 81 million barrels of oil and gas equivalents, which is more than 10 percent of PGNiG's total reserves.

(Reporting by Agnieszka Barteczko)