Rate on syndicated Rosneft credit LIBOR+2.1% - source
MOSCOW. Nov 28 (Interfax) - The interest rate on the syndicated credit Rosneft has raised from a group of international banks to finance the purchase of TNK-BP will be LIBOR + 210 basis points, a financial market source told Interfax.
Factoring in the all-in margin, the total cost of the credit is a little over LIBOR + 250 points.
The monetary component of Rosneft's deals with BP and the AAR consortium (Alfa Group, Access Industries, and Renova) for all of the stock in TNK-BP amounts to $45.1 billion, not counting accrued interest that Rosneft will pay them for the period from mid-October to the time the deals are closed. On Rosneft and TNK-BP's accounts there were as of September 30 money and its equivalent, as well as short-term financial investments, totaling over $15 billion.
The bank syndicate is prepared to extend Rosneft some $30 billion, including $7.5 billion in long-term financing, the company said in a presentation for an issue of Eurobonds. These bonds will be placed in the context of a LPN (loan participation notes) program of $10 billion (issue volume has yet to be determined) for the refinancing of the bridge component of the syndicated credit.
Among other sources of financing for the deals, the company identified in the presentation borrowing from Russian banks, payments under offtakes and long-term export contracts, internal cash flow, and the sale of assets.
