Gazprom Neft secures 10-year EUR 258 million loan
10 August 2012
Gazprom Neft has reached an agreement with a group of
international banks to take out a EUR 258 million, 10-year
syndicated unsecured loan facility supported by an export
credit agency. The proceeds will be used for the purchase
of equipment and services to upgrade oil refinery of NIS , Gazprom Neft's
HSBC BANK acted as Global Arranger, Mandated Lead Arranger
and Lender. The other Mandated Lead Arrangers and Lenders
are CESKA SPORITELNA, and KOMERCNI BANKA. The Export
Guarantee and Insurance Corporation of the Czech Republic
(EGAP) guaranteed the loan. This is one of the largest
loans covered by an export credit agency to a Russian
counterparty this year.
The agreement is still to be approved by the Board of
Directors of Gazprom Neft.
"This is the first time Gazprom Neft has secured a loan
guaranteed by an export credit agency. The arrangement
allows us to borrow at a lower rate and for a longer
period. The company will continue to work on optimising its
debt portfolio by seizing various opportunities to lengthen
the debt maturity profile and lower the interest rates,"
Yankevich, Deputy CEO and CFO of Gazprom Neft.
NIS is one of the
largest vertically-integrated energy companies of southeast
Europe. It is engaged in the exploration, production and
refining of oil and gas, as well as the sale of oil
Modernization of production processes is a fundamental to
NIS achieving the strategically-important top position in
the market for oil products in Eastern Europe and the
Balkans. An essential element of the program is the
modernization and construction of a facility for light
hydrocracking and hydrotreatment at the Pancevo oil
The new facility will improve the quality of the output. In
particular, the refining depth and the yield of light
products will increase; the fuel quality and environmental
safety will be improved.