11-03-08 WestLB Capital Markets Latin America, a unit of Germany's WestLB, and Spanish bank BBVA are acting as mandated lead arrangers to provide roughly $ 650 mm in financing for a deepwater rig in Mexico, a WestLB source told.
The financing will be provided for the IPC subsidiary of Mexican holding company Grupo R, which signed a nearly $ 1 bn service contract with Mexico's state oil company Pemex in July. The five-year contract has a day rate of $ 530,000.

The two banks have carried out initial bridge financing for $ 150 mm, which will be refinanced when the roughly $ 650 mm permanent financing comes to market in "the near future," the source said.
IPC has signed an EPC contract with Korean shipyard Daewoo for construction of the semi-submersible platform, which will be capable of drilling in water depths up to 3,000 m.

Construction of the platform will be completed in September 2010 in time to begin deepwater operations the following December.
"The key thing is it is really the first large deepwater rig being built for a Mexican operator so it's really a landmark deal," the source said. The banks will syndicate "a large part" of the $ 650mn financing, the source said.