The Middle East Oil Refinery (MIDOR) will receive a $1.2 billion loan from Crédit Agricole, BNP Paribas, and Italian bank Cassa Depositi e Prestiti, a source at the Ministry of Petroleum told Al Shorouk.

The loan will finance the second phase of the expansion plans at MIDOR’s refineries. The company expects to increase its output capacity by 15% to 39 million barrels of refined crude in fiscal year (FY) 2017/2018, Enterprise reports.

The first phase of the expansion projects started in January 2017 and was completed in September, the source told Al Shorouk.

MIDOR reached a preliminary agreement with the banking consortium in 2016.