TNK-BP enters into US$2.0 bn loan facility agreement with a club of international banks

The maturity of the loan is 3 years and the interest rate is 1.75% per annum above LIBOR. The facility is to be used for general corporate purposes.
The facility consists of 2 tranches amounting to $1bn each. The first tranche will be utilized to cover the financing requirements envisaged by the Company’s 2010 business plan. The second tranche is available for TNK-BP in a form of a committed line and could be drawn by the Company in full or in part within  6 months depending on the Company’s financial needs.
TNK-BP Chief Financial Officer, Jonathan Muir commented: “The size and price of this transaction as well as the number of banks participating in the deal show the strong market interest to TNK-BP’s credit. This success confirms the confidence of the international lending community in the operating and financial strengths of our company. The loan will provide us with greater financial resources and flexibility to manage our future growth opportunities”.
The facility generated a strong demand in the bank market which resulted in 16 banks participating in the transaction, namely: Bayerische Landesbank, BANK OF AMERICA MERRILL LYNCH, The Bank of Tokyo-Mitsubishi UFJ, Ltd., BNP PARIBAS (SUISSE) SA, CITIBANK INTERNATIONAL PLC, LONDON, Credit Agricole Corporate & Investment Bank, Deutsche Bank, HSBC Bank plc, ING Commercial Banking, Intesa Sanpaolo SpA, Mizuho Corporate Bank, Ltd., Nordea, The Royal Bank of Scotland, SOCIETE GENERALE, Sumitomo Mitsui Banking Corporation Europe Limited and WestLB AG, London Branch.
WestLB AG acted as a coordinator, documentation and facility agent.
TNK-BP is Russia's third largest oil company that is owned on a parity basis by BP and AAR consortium (Alfa Group/Access Industries/Renova). TNK-BP also owns ca. 50% of Slavneft, a Russian oil and gas company. TNK-BP produces ca. 16% of the total volume of Russian oil production (including TNK-BP interest in Slavneft). The total proven reserves owned by the company as estimated according to SEC LOF methodology amounted to 8.586 Bboe as of December 31, 2009.