Bloomberg News

Rosneft Signs $2 Billion Loan After Increase From $1.5 Billion

December 09, 2011

Dec. 8 (Bloomberg) -- OAO Rosneft, Russia’s biggest oil producer, signed a five-year credit line and increased it to $2 billion from $1.5 billion.

The facility is split between $1.4 billion and 470 million- euro ($627 million) portions, according to data compiled by Bloomberg. Both loans pay 1.85 percentage point more than benchmarks rates.

The euro portion was designed for European lenders with dollar funding difficulties, said a person with direct knowledge of the deal, who declined to be identified as the deal is private. The three-month cross-currency basis swap rate banks pay to convert euro payments into dollars is 1.165 percentage point less than the euro interbank offered rate, 14 times more expensive than on May 4, Bloomberg data show.

Barclays Capital led the financing and was joined by 14 banks. The Moscow-based oil exporter started talks with lenders in October to borrow $1.5 billion.

Rustam Kazharov, a spokesman for the Moscow-based exporter, wasn’t immediately available for comment.

-- Editors: Cecile Gutscher, Faris Khan

To contact the reporter on this story: Stephen Morris in London at smorris39@bloomberg.net.

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net.


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