TNK-BP executed a loan framework agreement
03 Sep 2004
TNK-BP today announced that on September 1, it executed a loan framework agreement with a consortium of international banks for up to USD 1 bln to be used for general corporate purposes. The consortium is led by ABN AMRO Bank N.V., BNP Paribas (Suisse) SA and Citigroup. The first tranche of $500 million has been drawn down on September 2. The framework agreement provides for further drawdowns in the future. The term of the loan is 5 years with a two-year grace period before repayments commence and it is secured by future oil deliveries. The following three bookrunners have been appointed by TNK-BP to manage the syndication process: Citigroup, acting as Coordinating Bookrunner; ABN AMRO Bank N.V., also acting as the Lender, Agent and Documentation Bank; and BNP Paribas (Suisse) SA. The Original Mandated Lead Arrangers, who include many of the leading players in the Russian syndicated loan market, are ABN AMRO Bank N.V., BNP Paribas (Suisse) SA, Calyon, Citigroup, Dresdner Kleinwort Wasserstein, Mizuho Corporate Bank Nederland N.V., Natexis Banques Populaires, Sumitomo Mitsui Banking Corporation Europe Limited and West LB AG. "The loan is a benchmark facility for future borrowings of TNK-BP," said Kent Potter, Chief Financial Officer, TNK-BP, " The terms and conditions of the loan are the best so far received by a Russian borrower. We see this as recognition of the excellent performance of TNK-BP in the first year of its operations, and a vote of confidence in our future successes."
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