Russian oil company Tatneft is likely to be tapping the financial markets again in 2010. The company is said to be in early talks with lenders exploring various refinancing options for a US$2bn loan it signed in April 2008.

The original facility has a bullet maturity beginning in July this year and as yet no decision has been taken over the type of refinancing facility the company will opt for. One source familiar with the borrower comments: “Given the improved market conditions, there are several reasonably attractive options open to the company.”

The original US$2bn 25-month senior secured loan signed in 2008 was used to finance the first phase of the Taneco project, a major refinery and petrochemical complex being built in Nizhnekkamsk in the Republic of Tatarstan. It paid a margin of 165 basis points over Libor and was arranged by ABN Amro, BNP Paribas, Citi, SMBC, UniCredit and WestLB.

In November the company successfully closed a US$1.5bn syndicated pre-export finance facility co-ordinated by mandated lead arrangers on the deal UniCredit and WestLB. RBS was also an initial mandated lead arranger and bookrunner. This financing was also used to support the Taneco project and leads some to wonder if the borrower will again opt for a pre-export facility.

The November deal was originally launched to the primary market with initial commitments totalling US$900mn. It was then launched into the syndications market, attracting an additional 13 new investors and closing well oversubscribed at US$1.5bn.

It comprised two tranches, a three-year portion and a five-year tranche, both of which are amortising. The smaller tranche was priced at 5.85% over Libor, while the five-year portion was priced at 6.85% over Libor per year.

Gazprombank also joined the facility before general syndication as bookrunner and mandated lead arranger. Nordea Bank (previously known as Orgres Bank) and Bank of Moscow also joined as mandated lead arrangers.

Oil trader Vitol joined the facility as an original lender as well as sole offtaker, and Citi and Bank Zenit acted as financial advisors to the borrower.

Tatneft is controlled by the Republic of Tatarstan's regional administration and is of key importance to the region, representing 80% of the republic’s oil production and 40% of its tax revenue. The company has the fifth largest proven oil reserves in Russia and is the sixth largest oil producer.