Lukoil Announces Major Debt Refinancing

Lukoil used US$ 1 billion raised on June 7, 2007, from the first Eurobond issue to refinance a significant part of the Syndicated Term Loan Facility worth US$ 1.9 billion obtained in December 2005.

As a result, the peak debt burden that falls on December 2008 had a more than two-fold decrease. In addition to that, the maturity of Lukoil Group consolidated debt portfolio expanded from 4 to 6.5 years and refinancing of a significant part of the bank loan enabled Lukoil Group's principal creditors to release considerable funds that are expected to be used for documentary operations development.