Rosneft Gets $16.8B In Loans, Eyes Trade-Finance Deal With Traders
MOSCOW - Russia's largest oil producer state-controlled OAO Rosneft said Monday it has raised $16.8 billion in bank loans and also plans to sign a trade-finance package with two international oil traders to finance the buyout of TNK-BP.
Rosneft is acquiring TNK-BP, Russia's number three oil producer, from BP PLC and the AAR consortium of Soviet-born billionaires in deals worth a total $55 billion in cash and shares that will create the world's largest listed crude producer. Under the deal, agreed in October, the AAR tycoons will get more than $28 billion when the deal closes in the first half of 2013. BP will hold a 19.8% stake in Rosneft as part of its deal to sell out of TNK-BP.
To finance the purchase of BP's 50% stake in TNK-BP Rosneft said it obtained a five-year loan of $ 4.1 billion and a two-year $12.7 billion loan from a group of international banks including Bank of America Merrill Lynch, Barclays Bank, BNP Paribas, BTMU, Citibank, Credit Agricole, ING Bank, Intesa Sanpaolo Banking Group, J.P. Morgan, Mizuho Corporate Bank, Natixis, Nordea Bank, SMBC, Societe Generale Unicredit Bank which are acting as mandated lead arrangers and lenders.
Separately, the oil giant said it agreed terms for long-term crude supply contracts with traders Glencore International PLC and Vitol.
Under the agreement Rosneft said it plans to sign contracts to supply up to 67 million metric tons of crude oil in total for a period of five years, subject to a prepayment. Rosneft would use future oil exports as collateral for the trade financing from the traders. The supplies are expected to commence in 2013, the company said, but didn't provide any financial details of the deal.
Dow Jones Newswires reported Dec.13, citing people familiar with the matter, that Rosneft was seeking up to $10 billion in the trade-finance package.
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