Rosneft: Seeking bridge loan
Rosneft may seek $5bn bridge loan
Russia's Rosneft plans to seek a Western bridging loan of $1.0-$1.5 billion in the first quarter of 2009 and up to $4 billion from state bank VEB in the whole of 2009 to refinance its debt, an executive said.
"Next year we will need around $1 billion per quarter for refinancing needs," vice-president Sergei Makarov told reporters.
The state-controlled oil company will seek to repay the loan by the end of 2009 with the help of money raised through a dollar-denominated Eurobond issue, said a Reuters note.
"We're going to try to issue Eurobonds next year if we have the chance. I hope by the end of the year that chance will come," he added. If the Eurobond issue proves impossible, Rosneft will take a five-year export-backed syndicated loan.
The decision to seek funding from VEB will depend on the interest rates the bank can offer, Makarov said.