London, England (FT) -- BP has raised $5bn in new loans by pledging revenues from oil sales for the first time in a bid to bolster its liquidity in the wake of the Gulf of Mexico spill.
The new financing is the latest effort to diversify its sources of funding and shore up liquidity, people close to the process said.
The proceeds will be used for general corporate financing rather than as financing for a $20bn escrow fund to pay for damages caused by the spill.
The UK oil group said it was taking a "prudent approach" to managing its balance sheet and its financial liquidity, including providing a liquidity buffer, to ensure that BP has the flexibility to meet all its future financial obligations.
"This form of financing creates further flexibility for BP as an alternative form of financing in addition to its more conventional debt financing such as corporate lending or project finance structures where appropriate," BP said.
The oil company has been strengthening its liquidity levels since the costs of the spill threatened to spiral. CNN
