Nov 09 - RLPC-Tatneft Increases Loan to $1.5 Bln-bankers

Source Press
Company Tatneft 
Tags Refining & Marketing Activities, Financing
Date November 10, 2009

(Reuters) - Russian oil firm Tatneft has increased its three-year syndicated loan to $1.5 billion from $900 million after the deal closed oversubscribed, banking sources close to the deal said on Tuesday.

The deal, which is expected to sign this month, raised around $1.9 billion in syndication, the sources said. Tatneft declined to comment.

Tatneft announced in August that it had launched the loan, which is secured on oil exports and split between a three-year tranche that pays 585 basis points (bps) over LIBOR and a five-year tranche that pays 685 bps.

Co-ordinating mandated lead arrangers are UniCredit and WestLB, and Royal Bank of Scotland is initial mandated lead arranger. All three are bookrunners along with mandated lead arranger Gazprombank.

Orgresbank and Bank of Moscow are mandated lead arrangers and Vitol joined as an original lender prior to syndication.

Proceeds are for general corporate purposes, including the borrower's refinery and petrochemical complex currently being constructed in Nizhnekamsk, Tatarstan. In syndication, lenders were invited to commit $75 million or more as mandated lead arrangers, $50 million as lead arrangers, or $25 million as arrangers. The first phase of the refinery is expected to have an annual capacity of 7 million tonnes.

Tatneft is controlled by the regional administration of the Republic of Tatarstan.

The entire refinery project includes an aromatics complex with a capacity of 151,000 tonnes a year in paraxylene, a naphtha hydrotreater with 1.1 million tonnes capacity, a kerosene hydrotreater of 500,000 tonnes capacity and a diesel-hydrodesulfurisation facility of 1.6 million tonnes capacity.

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