Senior syndication of a US$1bn facility for Russia’s Yukos has closed oversubscribed. No decision has yet been made on an increase. Five banks have joined and are offering varying levels of commitment.

General syndication is imminent. Mandated lead arrangers are Citigroup (joint bookrunner), Commerzbank, Crédit Lyonnais, Deutsche Bank, ING Bank, HSBC (joint bookrunner) and SG (joint bookrunner and co-ordinator).

The loan is divided into two tranches: a three-year tranche at 150bp and a five-year tranche at 175bp with a step-up to 200bp for the last two years.

The loan is for short-term funding requirements, which include a capital expenditure programme to improve the company’s infrastructure.