Chad agreed to restructure more than US$1 billion in debt with Glencore Plc, extending the loan's maturity to 12 years with the country receiving a two-year grace period, Bloomberg News reported Feb. 22.
Under the revised agreement, the interest rate is also reduced to the benchmark London Interbank Offered Rate interest rate plus 2%, compared to LIBOR plus 7.5% previously. Glencore will guarantee the oil supply for the country's local refining requirements in the contract's duration, according to the report.
The two sides previously met in December 2017, but ended talks without reaching an agreement.
Glencore lent the West African country's state oil company Societe des Hydrocarbures du Tchad about US$1.45 billion in 2014 to be repaid with crude oil, with the loan subsequently syndicated with several banks. The loan was then restructured in 2015 after global oil prices collapsed.