Illimity, Trafigura lend money to Italian refinery for energy transition

Reuters SG
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MILAN, July 31 (Reuters) - Illimity and commodity trader Trafigura have teamed up to lend more than 400 million euros ($434 million) to Italian refinery ISAB, which will invest 1.4 billion euros in the next decade to strengthen its business and make it greener.

Italy's illimity Bank said on Wednesday it had structured 350 million euros of financing for ISAB.

The hydrocarbon refinery based in Sicily will also get 75 million euros through a subordinated loan involving some of its shareholders, including Trafigura, illimity said.

The funding will support the first phase of the refinery's 2024-2033 investment plan aimed at strengthening its core business, reducing its environmental impact and developing additional green initiatives, the lender said.

ISAB - which Russia's Lukoil sold to Cypriot private equity fund Green Oil Energy last year - refines 320,000 barrels per day of crude, accounting for a fifth of Italy's refining capacity.

It directly employs about 1,000 people in the economically depressed southernmost region of Italy.

($1 = 0.9220 euros) (Reporting by Francesca Landini Editing by Mark Potter)