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Swiss-based energy company MET Group has extended its annual revolving credit facilities (RCFs), drawing in €1.1bn from a group of commercial banks.

The agreement is comprised of a short-term RCF worth roughly €960mn and a medium-term €150mn RCF, with MET Group expected to use the funding for working capital and general corporate purposes.

ING serves as facility and security agent on the short-term RCF, with OTP Bank acting in the same roles on the medium-term deal.

Other participating lenders include Banque de Commerce et de Placements, Citi, Credit Suisse, Deutsche Bank, Erste Group, GarantiBank International, Gazprombank, Gránit Bank, Natixis, Rabobank, Raiffeisen Bank, Sberbank, Société Générale, Takarékbank, UniCredit and Zürcher Kantonalbank.

Both facilities were oversubscribed having been initially launched at a lower amount.

“The backing of such a diversified banking pool is a clear vote of confidence,” says Sven Kirch, MET Group’s CFO. “The RCFs will continue to serve our growth plans and support our established standing as a trusted partner in the European energy markets.”

GTR understands the current list of sanctions announced by western governments against Russian banks last month will not impact MET Group’s ability to draw down on the facilities.

Mathieu Coolen, head of treasury and corporate finance at MET Group, says neither of the Russian banks involved in the company’s recent RCFs, Sberbank or Gazprombank, have been targeted by the EU.  

That’s despite the US and UK moving in recent weeks to cut Sberbank out of their respective financial systems, with Downing Street having prohibited entities from establishing or continuing a corresponding banking relationship with the Russian bank, or processing transactions involving the lender.

On March 2, the EU said it would exclude seven Russian banks from Swift, the payment messaging system that underpins global trade, a move widely backed by allies including the US, UK and Canada.

The banks, which were given 10 days to wind down their Swift operations, are VTB Bank – Russia’s second-largest bank in term of assets held – along with Bank Otrkitie, Novikombank, Promsvyazbank, Bank Rossiya, Sovcombank and VEB.

Omitted from the list were Sberbank and Gazprombank, both of which play a key role in processing payments for Russian oil and gas.