TMK, one of the world’s leading steel pipe producers, has successfully closed a US$155mn syndicated structured facility. Bank Natexis (ZAO), Moscow, the Russian banking subsidiary of Natexis Banques Populaires, acted as sole mandated lead arranger, facility agent and bookrunner.


The syndication was successful: the loan was 47% oversubscribed from the US$105mn originally sought. The pool of banks includes Russian banks and international banks through their local subsidiaries.


The transaction is innovative as it is the first loan for a Russian borrower backed with a security package registered purely under Russian law syndicated among international and Russian banks.


Senior lead arrangers are: Commerzbank (Eurasia), Gazprombank, ING Bank Eurasia ZAO, International Moscow Bank, Soci&eaute;té Générale Paris and Banque Societé Générale year and is a 30-month multi-currency amortising structured facility with an option for tenor extension up to 42 months. The facility is secured at all times by an assignment and pledge of commercial contracts for the delivery of tubular products by TH TMK to prime Russian oil companies and by a pledge of goods in circulation.


Founded in 2001, TMK is Russia’s largest producer and exporter of pipe products. It produced a total of 2.92mn tonnes in 2005.


TMK supplies pipe products to more than 60 countries. Its customers include Shell, AGIP, Repsol, Saudi Aramco, Wintershall and Anadarko Petroleum. Among its Russian customers are Gazprom, Transneft, Lukoil, Rosneft, TNK-BP, Surgutneftegaz and other leading companies of the oil and gas industry. Besides the oil and gas industry, TMK pipes are used in other sectors as well such as the chemical and petrochemical industries, engineering, energy, construction and agriculture.