OAO Rosneft, Russia’s largest oil producer, signed loan agreements for $16.8 billion to finance the acquisition of TNK-BP.
Rosneft will borrow $4.1 billion for five years and $12.7 billion for two years from a group of international banks. The cash will pay for BP Plc’s 50 percent stake in Russia’s third-largest oil producer, the Moscow-based company said in a statement today.
The state-run oil producer, led by former deputy prime minister and close Vladimir Putin associate Igor Sechin, has signed seperate agreements with BP and a group of billionaires to buy all of TNK-BP. The deals will make Rosneft the world’s largest publicly traded producer of crude oil.
The lending banks include Bank of America Corp., Barclays Plc, BNP Paribas SA, Citigroup Inc., Credit Agricole SA, ING Groep NV, Intesa Sanpaolo SpA, JPMorgan Chase & Co., Mizuho Financial Group Inc., Nordea Bank AB, SMBC, Societe Generale SA UniCredit SpA.