Rosneft repays tranche on bridge loan

Russian oil producer Rosneft has repaid a US$5.2bn tranche of a short-term acquisition financing drawn down in early 2007.

It has funded this repayment by closing a US$3bn five-year pre-export facility in February and through the generation of sufficient free cash flow to cover the balance.

As of March 14, Rosneft refinanced or repaid a total of US$5.6bn out of US$5.8bn of short term debt due for repayment in the first quarter of 2008.  Out of this US$2.6bn has been fully repaid from free cash flow, and the repayment of the remaining US$190mn will be financed by free cash flow.

"Despite adverse conditions in global credit markets, Rosneft's refinancing and repayment of US$5.6 billion of maturities is a good indication of both the company"s strong reputation among major international lenders and its ability to generate significant free cash flow, notwithstanding the current challenges presented by rising inflation and taxation,” comments Rosneft president Sergei Bogdanchikov.

Rosneft signed a US$3bn structured crude oil pre-export credit facility via mandated lead arrangers ABN Amro, BBVA, Barclays Bank, Bayerische Landesbank, BNP Paribas, Deutsche Bank, ING Bank, JPMorgan, Mizuho Corporate Bank, Orgresbank (part of Nordea Bank), Soci&eaute;té GénéraleTokyo-Mitsubishi UFJ and WestLB.

The facility carries a tenor of five years, and features a margin of 95 basis points over Libor. (Click here to read previous coverage of Rosneft, GTR eNews February 28, 2008)