HSBC-led consortium of international and Gulf banks will provide a $1 billion loan for the Petroleum Export Limited, which is a subsidiary of the Egyptian General Petroleum Corporation (EGPC), banking source told Al Shorouk Newspaper.

The loan will be used to partially settle the debts owed by Petroleum Export Limited to foreign partners.

EGPC is seeking credit facilities from international financial institutions to secure its needs, especially those of settling its arrears to international oil companies (IOCs).

In July, sources told Reuters that EGPC hired HSBC to arrange a loan of around $1 billion. The loan facility was requested by the Petroleum Export Limited, which is a special purpose firm used by EGPC in order to raise loans in the past.