Mandated lead arrangers ABN Amro, Calyon and Credit Suisse have closed a US$3.1bn syndicated bridge facility for KazMunayGas PKOP, a wholly-owned subsidiary of Trade House KazMunayGas.
The purpose of the facility is to finance the acquisition of a direct or indirect interest in up to 100% of the shares of Rompetrol Holding. The acquisition will enable the Kazakh energy company to increase its oil processing capabilities through providing it access to two refineries in Romania.
The original mandates were awarded in October (Click here to read previous coverage in GTR eNews, October 11, 2007).
During syndication the facility was oversubscribed, and the initial request for US$3bn was increased to US$3.1bn. It carries a tenor of 364 days and pays a margin of 90 basis points per year.
Joining the facility during syndication as additional mandated lead arrangers were China Development Bank, Bank of Tokyo-Mitsubishi UFJ, BayernLB, SMBC, and Soci&eaute;té Générale
Lead arrangers are Bank of China and Erste Bank, while arrangers are BNP Paribas, HSH Nordbank, and WestLB. KBC Bank joined as a co-arranger and lead arrangers are DekaBank and RZB.
Rompetrol Group is a multinational oil company with its headquarters in Netherlands, and operations and assets in Romania, southeastern Europe, France and Spain.
Appetite for investment in Kazakhstan's oil and energy sector seems to have remained strong, despite some concerns about recent actions taken by the Kazakh government.
There have been disputes between Italy's Eni and Kazakhstan over the development of Kashagan, an oilfield in the Caspian Sea region.
Concerns have also been raised by the government's decision to pass an amendment to the natural resources bill in September 2007 that allows it to cancel or introduce retrospective changes to contracts if they feel it harms the economic interests of Kazakhstan.
However, in September 2007 another bridge facility was successfully closed at US$1.05bn for KMG Kashagan, a special purpose vehicle set up by KazMunaygaz. Mandated lead arrangers on this deal were Soci&eaute;té Générale BNP Paribas and Citi.
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