RusPetro Plc (RPO), an oil producer in Siberia, rose as much as 16 percent to lead gains among the 600 companies on the FTSE All-Share Index (ASX) after OAO Sberbank (SBRCY) granted it a loan extension and a “holiday” on interest payments.
The stock jumped to as much as 45 pence and was up 14 percent at 44.25 pence at 10:43 a.m. in London, the biggest gain in a month. More than 2 million shares had traded, about 60 percent above the three-month daily average for the Moscow-based oil and gas explorer.
State-run Sberbank, Russia’s largest lender, extended RusPetro’s $297.4 million loan by three years to April 2018, and agreed to waive interest payments this year, as well as in 2014 as long as the driller meets certain covenants, the company said today in a statement.
The deal allows RusPetro to “fully focus on monetizing our gas reserves and developing our oil business,” Chief Financial Officer Tom Reed said in the statement.
Over two years, the waiver represents a $50 million reduction in payments by RusPetro, which holds three exploration and production licenses in Western Siberia. The restructuring cost is $1 million, the company said. The effective interest rate is 8 percent, payable semi-annually starting in 2015.
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