OMV Extends Long-Term Refinancing Program

OMV Group, the leading energy Group in Central and Southeastern Europe, announced the refinancing of a EUR 1.5 bn syndicated revolving credit facility. This marks the latest step in a process of enhancing the funding profile of the Group initiated in September 2008 with the first time publication of credit ratings assigned by Moody's (A3) and Fitch (A-).

OMV Group has signed a EUR 1.5 bn syndicated multi-currency credit facility with a five-year maturity. This facility replaces the existing facility expiring 2011 and will be used for general corporate purposes. The transaction was arranged by Bank of America/Merrill Lynch, Barclays Capital, BNP Paribas, Credit Agricole, Deutsche Bank, Erste Group, J.P. Morgan, Raiffeisen Zentralbank, Société Générale and Unicredit Bank Austria as Mandated Lead Arrangers and Bookrunners. The bank syndicate comprises a total of 16 domestic and international lenders. The margin is set at 75 bps p.a. over EURIBOR.

David Davies, CFO of OMV commented, "The signing of this facility extends a refinancing programme during which OMV Group has established itself as a borrower in the Eurobond market significantly broadening its investor base. We have substantially reduced the Group’s reliance on bank debt and now have a balanced portfolio of bank debt and funds sourced from the capital markets." By the end of 2009 the average maturity of the Group's debt could be extended to 3.7 years and unused committed credit facilities amounting to EUR 2,850 mn were available to OMV Group.

The following milestones have led to the current comfortable funding profile:

  • October 2008: Petrom enters into a 3 year EUR 375 mn revolving credit facility with five relationship banks.
  • January 2009: The OMV Group taps the German loan note market in the amount of EUR 555 mn with maturities until 2014 and 2016.
  • March 2009: Establishment of a EUR 3 bn Euro Medium Term Note (EMTN) Programme. The EMTN programme is a funding programme, which allows the OMV Group to issue debt in the Euromarkets on a flexible basis. Each issue is a drawdown from the EMTN programme.
  • March 2009: Petrom secures a EUR 300 mn, six year loan from the European Bank for Reconstruction and Development (EBRD) to support the environmental and energy efficiency investments of the company.
  • April 2009: The OMV Group issues its inaugural Eurobond out of the EMTN programme with a maturity of five years. The initial EUR 750 mn bond is later increased to EUR 1 bn via a tap issue.
  • May 2009: The European Investment Bank (EIB) and the EBRD extend to Petrom a EUR
  • 400 mn loan with a maturity of 12 years for the construction of a gas-fired power plant.
  • June 2009: The OMV Group issues a bond out of the EMTN programme in the amount of EUR 250 mn with a maturity until 2016.
  • December 2009: Petrom secures an additional EUR 500 mn revolving credit facility with a maturity of three years provided by a group of national and international banks. At the same time OMV Petrom extends the maturity of the existing EUR 375 mn facility until 2012 and increases the flexibility under the financial covenants.
  • February 2010: The OMV Group issues a EMTN EUR 500 mn bond with a maturity of 10 years.
  • April 2010: The OMV Group refinances a EUR 1.5 bn syndicated revolving credit facility.

Through the above transactions the OMV Group has established itself in the international debt capital markets and has demonstrated that even under the most difficult market conditions it is seen as a stable investment.



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