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International banks have signed a mega-prepayment loan with commodity traders Glencore and Vitol to fund long-term purchases of crude oil from Russia's Rosneft.
A group of international banks has signed a mega-prepayment loan with commodity trading companies Glencore and Vitol to fund long-term purchases of crude oil from the Russian state-owned oil producer Rosneft.
The $7.5 billion financing was signed yesterday (7 March), and goes into syndication next week (see below for full details of the loan structure). It is hoped the syndication will result in an increase to $10 billion. One banker comments: "We anticipate that syndication will go very well as there are early indications of significant market appetite for this attractive deal and these borrowers."
The financing relates to the long-term crude supply contracts that Glencore and Vitol signed with Rosneft on 4 March, and this was first set under initial agreement with the trading companies signed in December 2012. The crude oil supply agreement with Glencore envisages supply...