12 Aug 2009 17:25

NOVATEK shareholders sanction 30 bln in Gazprombank loans

MOSCOW. Aug 12 (Interfax) - Shareholders in NOVATEK on August 7 voted in favor of the gas company borrowing up to 30 billion rubles over five years from Gazprombank, the company said in a statement.

NOVATEK could sign up to five loan agreements with the bank, but none or them for more than 15 billion rubles. The maximum rates will be 12% pa in foreign currency and 19% in rubles.

"The resolution provides a framework for the negotiation of potential loan agreements between NOVATEK and Gazprombank. The resolution was necessary to provide Gazprombank the opportunity to participate in future credit agreements if its terms were competitive compared to those of other potential lenders," NOVATEK said.

Gazprombank's chairman, Andrei Akimov, is a member of NOVATEK's board of directors, making the deal an interested-party transaction that requires shareholder approval.

NOVATEK on June 4 closed a deal to buy 51% of OJSC Yamal LNG, which holds the license to the South Tambey gas condensate field, from three firms associated with Gennady Timchenko's Volga Resources fund for $650 million.

NOVATEK will pay a first $200 million installment with its own funds, a second installment of $300 million by the end of this year and the final $150 million in 2011.