Bank of China participates in $14.212 billion syndicated loan to Rosneft for acquisition of 50% stake in TNK-BP

On November 22, 2012, PJSC Rosneft Oil Company — Russia’s third largest hydrocarbon producer operating in Russia’s major hydrocarbon regions (including Western Siberia, Volga-Urals and Eastern Siberia) with assets in Ukraine, Belarus, Venezuela, Vietnam and Brazil — acquired 50% stake in TNK-BP from BP for $17.1 billion in cash and 1,360,449,797 Rosneft stock shares (representing a 12.84% ownership stake in Rosneft). To facilitate this acquisition, Rosneft obtained a 5-year loan of $4.1 billion and a 2-year loan of $12.7 billion from a group of international banks, including include Bank of America Merrill Lynch, Barclays Bank, BNP Paribas, BTMU, Citibank, Credit Agricole, ING Bank, Intesa Sanpaolo Banking Group, J.P. Morgan, Mizuho Corporate Bank, Natixis, Nordea Bank, SMBC, Societe Generale and Unicredit Bank. Then, on March 21, 2013, Rosneft provided BP $12.5 billion in cash and a 19.75% ownership stake in Rosneft in order to acquire the remaining 50% stake in TNK-BP. To facilitate this acquisition, Rosneft signed a $14.212 billion syndicated loan on February 13, 2013 with Bank of China, Bank of America Merrill Lynch, Barclays Bank, BNP Paribas, BTMU, Citibank, Credit Agricole, ING Bank, Intesa Sanpaolo Banking Group, J.P. Morgan, Mizuho Corporate Bank, Natixis, Nordea Bank, SMBC, Societe Generale, Unicredit Bank. Bank of China’s monetary contribution to syndicated loan is unknown. The loan carried a 2-year maturity (final maturity date: February 13, 2015) and an interest rate of 1-month LIBOR plus a 1.9% margin. The average 1-month LIBOR rate in February 2013 was 0.20%, so the all-in interest rate has been estimated as 0.20% + 1.90% = 2.1%. Rosneft announced in December 2013 that it had begun early repayment of the $14.212 billion loan. The loan was repaid in full in December 2014.

Additional details

1. For the time being, AidData has estimated the contribution of the Chinese state-owned bank by assuming that the sixteen lenders contributed equal amounts ($888,250,000) to the loan syndicate. 2. Rosneft’s identification number for the loan is 0000813/0796Д. 3. One source (https://www.dropbox.com/s/yghw3skjom1uzbu/results-q1-13.pdf?dl=0) suggests that the face value of the 2-year bridge loan was $11.88 billion and it was bundled with a separate $2,332,000,000 term loan facility. This issue merits further investigation. 4. Rosneft is a Russian state-owned company.

Number of official sources

6

Number of total sources

13