Logo
  Thursday, November 14, 2019
Sign-In  |  Sign-Up  |  Contact Us  |  Bookmark 

Gazprom intends to borrow over $10 billion from foreign banks to purchase Yukos's main production unit
Gazprom intends to borrow over $10 billion from foreign banks to purchase Yukos's main production unit. This will be the largest loan in Russia's banking history, analysts say. Gazprom is now in talks on taking a syndicated $10 billion loan, a top manager at a foreign bank involved in the transaction told Vedomosti. The transaction will be managed by six banks: ABN AMRO, BNP Paribas, Calyon, Deutsche Bank, Dresdner Kleinwort Wasserstain and J.P.Morgan, he said. The loan organizer is Deutsche Bank and now it is discussing terms with Gazprom's management. It is expected to be an unsecured short-term loan for up to a year. The loan will be equally distributed between banks, $1.67 billion each. Reuters reports that the interest rate will be EURiBOR + 1.3% annually (about 3.55% annually). Gazprom's spokesman confirmed that the gas giant was taking loans to purchase Yuganskneftegaz. The loan will be a bridge transaction, which means that in 2005 it will be redrafted, i.e. secured by long-term bonds or restructured under new conditions, he said. He did not comment on the sum of the loan and the interest rate. Neither did the creditor banks. Analysts believe that it will be a short-term syndicate to be gradually replaced with other loans and credits during a year. Dmitry Lukashev of the Aton investment company says that after the merger with Rosneft and purchase of Yuganskneftegaz Gazprom's total debt may amount to $35-37 billion. However, he believes this is acceptable for a company with a capitalization of $65.5 billion. While Gazprom is in a hurry to secure support of Western banks, his board has already endorsed the purchase of Yuganskneftegaz, whose back tax bill has already amounted to $5.1 billion
Print Gazprom intends to borrow over $10 billion from foreign banks to purchase Yukos's main production unit Bookmark Gazprom intends to borrow over $10 billion from foreign banks to purchase Yukos's main production unit

Related News   
NovDecember 2004Jan
MoTuWeThFrSaSu
293012345
6789101112
13141516171819
20212223242526
272829303112
3456789