Alvopetro Energy Ltd (TSX-V:ALV, OTC:ALVOF) announced that its wholly owned subsidiary, Alvopetro S.A. Extração de Petróleo e Gás Natural, has secured a US$20 million credit facility with Itaú BBA International plc.
The proceeds will support planned capital programs and for general corporate purposes.
"This credit facility provides Alvopetro with significant additional financial flexibility allowing us to accelerate our capital programs focused on high rate of return growth opportunities in Brazil and the Western Canadian Sedimentary Basin,” Alvopetro CEO Corey Ruttan said in a statement.
“These opportunities underpin our disciplined capital allocation model, balancing growth and returns to stakeholders."
The loan carries a fixed annual interest rate of 7% and has a two-year term. Interest will be paid quarterly.
The facility includes a 12-month grace period, after which repayment will occur through quarterly installments beginning in November 2026, and concluding November 2027.
As part of the agreement, Alvopetro SAhas established a standby letter of credit with Itaú Unibanco SA in Brazil, and Alvopetro will enter into a guarantee agreement covering obligations under both the credit facility and the letter of credit.