Novatek signs syndication

Russian gas producer Novatek has signed the facility agreement for an unsecured US$800mn syndicated loan facility, via initial mandated lead arrangers and bookrunners BNP Paribas, Calyon, Citi, and SMBC Europe.

General syndication has now been closed, and the committed banks have begun their documentation review. The banks are expected to sign into the facility via a global transfer certificate within the next few weeks.

The facility has a three-year tenor, with an 18-month repayment grace period. It will be used for general corporate purposes, covering capital expenditure and the refinancing of existing debt.

It pays a margin of 1.25% per year during the first 18 months, before rising to 1.50% per year from there on.

Legal counsel for Novatek is Vinson & Elkins, while Clifford Chance provided counsel for the banks.

Novatek is Russia's largest independent gas producer, and the second-largest natural gas producer in Russia after Gazprom.

The company is listed on the London Stock Exchange since its IPO in July 2005.