JSC "Gazprom Neft" signs syndicate banks into US$1 bln syndicated Loan Facility

JSC "Gazprom neft" is pleased to announce that syndication of the US$1bln syndicated Loan Facility has successfully closed. Syndicate banks were signed into the Facility via a syndication agreement on 4th July. In spite of the difficult market conditions the facility was oversubscribed and closed within a short timeframe.

The Facility was arranged by Banco Bilbao Vizcaya Argentaria S.A. ("BBVA"), The Bank of Tokyo-Mitsubishi UFJ, Ltd. ("BTMU"), Barclays Capital (the investment banking division of Barclays Bank PLC), Sumitomo Mitsui Banking Corporation ("SMBC") and WestLB AG, London Branch ("WestLB"), (together the "Initial Mandated Lead Arrangers" or the "Bookrunners").

The Facility comprises two tranches: a 3 year tranche and a five year tranche Margins are 150bp p.a. and 175bp p.a. respectively.The proceeds of the facility will be used for general corporate purposes and for refinancing of existing indebtedness.

WestLB AG, London Branch acted as documentation bank and Facility Agent. SMBC acted as co-ordinator.

Notes for editors

Gazprom neft is one of the leading vertically integrated oil company in Russia. The main areas of Gazprom neft’s business activity include oil production, oil refining and marketing of petroleum products. It is the 5th largest oil company in Russia measured by oil production.

Gazprom neft is currently rated BBB- (stable) by Standard & Poor’s and Baa3 (stable) by Moody’s following an upgrade on 4 July 2008. Gazprom neft is 75.68% owned by the Gazprom group.

In 2007, Gazprom neft’s oil production totalled 32,7 million tons, with refining throughput of 26,2 million tons. According to US GAAP, Total Revenues for the full year 2007 were US$21,100 million. EBITDA was US$5,828 million, with Net Income of US$4,143 million.