LUKoil has raised a $1bn syndicated loan in two tranches, the company's press office reported today according to RBC. The first tranche worth $300m, taken out at an annual interest rate of LIBOR plus 0.85 percent, matures in three years, while the second tranche of $700m, secured at an interest rate of LIBOR plus 0.95 percent, has a maturity period of five years. LUKOIL Finance Ltd, a 100-percent LUKoil owned subsidiary, acted as the borrower, while ABN AMRO Bank N.V., Banco Bilbao Vizcaya Argentaria S.A., BNP Paribas (Suisse) S.A., Bank of Tokyo-Mitsubishi UFJ Ltd., and several other banks arranged the loan. The deal was secured by LUKoil's warranty.
The funds raised will be used to repay LUKOIL Finance's remaining debt to a syndicate of international banks for a loan raised by LUKoil in 2005.