Suek closes syndicated loan

Syndication closed on April 30 for the US$800mn loan facility for Siberian coal energy company (Suek).

The loan will be extended in two tranches, both secured by export contracts. The first tranche, totalling US$533.3m, carries a tenor of three years and is provided at Libor plus 140 basis points. The second, five year tranche, carries margins of Libor plus 150bp for the first two years, Libor plus 160bp during the third year and steps up to Libor plus 170bp for the remaining two years.

Mandated lead arrangers and bookrunners Societe Generale Corporate and Investment Banking, Banque Societe Generale Vostok, Barclays Capital, BNP Paribas (Suisse), Calyon, ING Wholesale Banking, Raiffeisen Zentralbank Oesterreich AG and SMBC Europe were joined by eight other banks in syndication. It is understood that, in line with current market trends, the mandated lead arrangers will hold approximately 10% of the facility amount.  

The loan is intended to finance Suek's energy acquisitions and refinance its current debt. Suek, Russia's largest coal producer, was last in the market with a US$650mn five-year financing, also arranged on a pre-export basis and closed in June 2007.