Rosneft borrows $3 bn from banks to repay debt

Posted: 2008-02-23 00:46:37+05:30 IST
Updated: Feb 23, 2008 at 0106 hrs IST

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Oil trades below $70 per barrel Oil rises above USD 70 per barrel Oil spikes past USD 72 per barrel Oil dips near USD 68 per barrel

Feb 22 : OAO Rosneft, Russia's biggest oil producer, borrowed $3 billion from a group of 16 banks to refinance loans used to buy assets of bankrupt OAO Yukos Oil Co.

The five-year loan has an interest rate of 0.95 percentage points more than the London interbank offered rate, and is secured by crude oil export contracts, Moscow-based Rosneft said on Friday.

Rosneft abandoned a bond sale in July, as the collapse of US subprime mortgages caused yields to soar. The company has a March 19 deadline to refinance $5 billion of 12-month bridge loans that were used for the $22 billion acquisition of Yukos assets in May last year.

The oil company raised the short-term bridge loans in March 2007 in the biggest-ever financing for a Russian company. It agreed to pay an interest margin on the debt of 0.25 to 0.5 percentage point above money-market rates.

The loan was arranged by ABN Amro Bank NV, Barclays PLC, BNP Paribas, Deutsche Bank AG, ING Bank NV, JPMorgan Chase & Co, Mizuho Corporate Bank, Societe Generale SA, and others.

—Bloomberg

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