Glencore reduces the interest rate of the 2-billion credit of Russneft

Swiss trader Glencore reconsidered the conditions of the 2.08 billion USD credit of Russneft, having reduced the interest rate and postponed its paying off.

Glencore reduced the credit rate from 9% to 7.75% and moved the repayment term by 4 years – form 2020 to 2024.

The decision was made in November 2012 in the framework of the tripartite agreement with Sberbank and Russneft.

In exchange Glencore will obtain additional payments at the amount of 50 million USD till the moment when the debt is either fully paid off or refinanced.

In July 2012 Sberbank reduced the interest rate of Russneft’s credit from 9 to 7%.

At that time the debt of Russneft made up 4.96 billion USD.

Russneft claimed, optimization of the credit portfolio would let it concentrate on fulfillment of its investment program – to extract 18 million tons of oil.

The development strategy is mainly based on increment of extraction of hydrocarbons, geological exploration and development of gas projects.

The Head of the company M. Gutseriyev and Systema JSFC hold 49% of Russneft each. The rest 2% are held by Sberbank as a pledge with the right of redemption by Russneft.

In 2012 RAS profit of Russneft made up 8.198 billion RUR against the net loss of 3.823 billion RUR in 2011.

Of February 14, 2013 M. Gutseriyev said, Russneft wouldn’t pay the rest of the dividends for 2012 and they could be paid once again for 9 months of 2013.

The dividends for 9 months of 2012 made up 84 million USD.

“There will be dividends for the third quarter, not for a year”, he said.

Source: http://neftegaz.ru/news/view/108050

Translated by Alexandra Utyasheva