Glencore, banks and Chad reach deal on over $1 bln oil-backed loan

Glencore and four bank lenders have reached a deal with Chad on the restructuring of an over $1 billion oil-backed loan, sources familiar with the matter said.

Glencore backed by banks lent the west African country’s state oil firm SHT (Societe des Hydrocarbures du Tchad) about $1.45 billion in 2014 to be repaid with crude oil cargoes.

The loan was restructured once in 2015 after the crash in global oil prices but Chad struggled to repay the debt.

The country secured credit from the International Monetary Fund last year but the release of most of these funds depended on a second restructuring of this debt.