The credit is intended for refinancing the six secured credits Gazprom got in the 2001-2003 period. It is secured by export revenues from the long-term contract on the supply of natural gas to Czechia.
As a result of the deal, making use of the favorable financial market situation, Gazprom has axed the cost of borrowings, released from security four present export contracts and optimized the average term of its credit indebtedness, the press release says.
Syndication of the credit has been a success, the volume of proposals from over 40 banks exceeded $2.5 billion, the bank communique continues. Despite the syndication results, Gazprom has decided not to increase the initial sum of the credit and the final bank participation has been greatly reduced.
ABN Amro notes that it is the biggest, fully undersigned by one bank syndicated credit given to a Russian company after 1998.
OAO Gazprom is the largest producer of gas in the world. Its proved reserves constitute 16 percent of the world's proved reserves of natural gas. Gazprom's share on the European gas market is 25 percent. On September 14, 2004 the Russian government proposed increasing the state's share in the company's authorized capital by passing its shares to the state company Rosneft, which will become a 100-percent subsidiary of Gazprom. Rosneft assets' integration will be the first step towards liberalization of the OAO Gazprom share market.
ABN Amro is a global universal bank with 3,000 branches in over 60 countries. As of June 30, 2004, its assets volume was 632.8 billion euros. In Russia ABN Amro has been carrying out commercial activities within the Russian Central Bank's general license since 1993.
