The EGPC has reportedly tapped HSBC to arrange a USD 1 bn syndicated facility, banking sources told Reuters over the weekend. The loan, which the sources said is being syndicated to other banks, will have a five-year maturity and will be used partially “to pre-pay EGPC cargo deliveries.“ The facility is “being requested by Petroleum Export Limited (PEL), a special purpose vehicle used by EGPC… to raise several loans in the past.” Like other PEL transactions, the loan is expected to be a “structured finance [transaction],” the sources added. Oil Ministry spokesperson Hamdi Abdel Aziz denied the claim, saying no agreement has yet been reached, according to the newswire. Back in May, sources claimed the EGPC had been seeking two loans from a local banking consortium worth a combined USD 850 mn in order to repay arrears to international oil companies, which are currently at their lowest levels yet.