Oil major Tatneft has signed a $1.5bln credit contract with a syndicate of international and Russian banks to finance the construction of its TANEKO oil refining and petrochemical factories complex in Nizhnekamsk. This project is an illustrative example of what businesses need to aspire to in the context of the recent meeting held in Nizhnekamsk by Russian Prime Minister Vladimir Putin that was dedicated to the development of our petro- and gas-chemicals industry. Therefore, it was not accidental that one of the projects visited by Putin was the TANEKO factories construction site.
The loan, offered in two tranches for 3 and 5 years, will attract interest rates of LIBOR+5.85% and LIBOR+6.85%, respectively. The contract signing ceremony was graced by Rustam Minnikhanov, Tatarstan prime minister and Tatneft board chairman, Tatneft CEO Shafagat Takhautdinov and representatives of the banks of creditors syndicate, headed WestLB and Unicredit/HVB. “This contract is a landmark event not only for Tatarstan, but also for the Russian business as a whole, as well as a positive sign for the entire market,” Tatarstan prime minister said.
Apart from WestLB and Unicredit/HVB, other creditors included RBS and Gazprombank, Nordea, Bank of Moscow, BNP Paribas, VTB Europe, Societe Generale, ING, HELABA, AKBANK, as well as KFW, First Bank of Nigeria, Erste, Intesa, FIM Bank, PGGM, Russian Commercial Bank. Another key participant is Vitol, a key global oil and oil products trader that will be the off-take buyer of oil delivery pledged as collateral for the loan contract. Tatneft’s financial advisers on this loan were Zenit Bank and Citibank, its legal adviser was Cleary Gottlieb, while Allen & Overy acted on behalf of the creditors.
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