OAO Tatneft in $550 Million Financing
June 24, 2011
Cleary Gottlieb acted as international counsel to its long-standing client, OAO Tatneft, Russia’s sixth largest oil company, in its $550 million unsecured credit facility financing signed on June 24, 2011. The credit facility is structured as a fixed rate loan of 3.50% per annum with bullet repayment in three years and 6-month interest period. The transaction has unique features associated with hedging the lenders’ exposure to fixed interest payable by Tatneft. The credit facility is raised through a self-arranged club deal that attracted interest from prospective lenders substantially exceeding Tatneft’s borrowing requirements. The loan was arranged by BNP Paribas (Suisse) SA, The Bank of Tokyo Mitsubishi UFJ, Commerzbank, ING Bank, Natixis, Nordea Bank, Sumitomo Mitsui Banking Corporation and WestLB, London Branch. WestLB, London Branch, is also acting as Facility Agent and Documentation Agent.