• 5 minutes Trump will capitulate on the trade war
  • 7 minutes China 2019 - Orwell was 35 years out
  • 12 minutes Glory to Hong Kong
  • 15 minutes ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 14 mins Is Eating Meat Worse Than Burning Oil?
  • 3 hours Canada Election Deadlock?
  • 1 min Diplomatic immunity
  • 4 hours China & Coal: China's 2019 coal imports set to rise more than 10%: analysts
  • 15 hours Clampdown on Chinese capital flight is shutting down their commercial construction in US
  • 23 hours Here's your favourite girl, Tom!
  • 1 day Peaceful demonstration in Hong Kong again thwarted by brutality of police
  • 2 hours Devaluing the Yuan
  • 3 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 23 hours IMO 2020:
  • 14 hours Nigeria Demands $62B from Oil Majors
  • 1 day Deepwater GOM Project Claims Industry First
  • 12 hours Fareed Zakaria: Canary in the Coal Mine (U.S. Dollar Hegemony)
The UK Reaches A Remarkable Renewable Milestone

The UK Reaches A Remarkable Renewable Milestone

Coal’s days are numbered as…

The Death Of The World’s Most Popular Battery

The Death Of The World’s Most Popular Battery

Batteries provide a much-needed utility…

Italian Bank To Syndicate $5.8B Loan For Rosneft Deal

Rosneft

Intesa Sanpaolo, Italy’s largest bank by market capitalization, has started the process to syndicate the US$5.8 billion (5.2 billion euro) loan it had extended to Glencore and the Qatar Investment Authority to help them fund the acquisition of a 19.5 percent interest in Russian oil giant Rosneft in December last year, Reuters reported on Thursday, citing banking sources.

Intesa Sanpaolo is now looking at ways to spread the risk, and has launched a loan syndication process with a “limited group of banks”, a banker told Reuters.

The deal for the privatization of 19.5 percent of Rosneft, announced in December and completed in January, valued the stake at around US$11.3 billion.

Upon announcing the deal, Rosneft said that the acquisition would be financed with own funds from the buyers as well as debt financing, the bulk of which would be provided by Intesa.

The Italian bank’s loan to Glencore and the Qatar Investment Authority came under regulatory scrutiny over whether it would violate EU sanctions against Russia.

In March this year, Italy’s Financial Security Committee approved the loan. The Italian committee—which includes representatives of Italy’s foreign, justice, and finance ministries, as well as the financial police, the central bank and the anti-mafia authorities—found no violations. Rosneft, as well as its chief executive Igor Sechin, are among the sanctions targets.

No Russian banks are involved in Intesa’s current syndication process, according to two of Reuters’ sources.

“It is a complicated deal and not everyone will have the appetite for it,” according to one banker.

In February, the head of Intesa’s operations in Russia, Antonio Fallico, told Reuters that the bank was talking to 14 banks to syndicate the loan, and would pick 2-3 banks to take up to US$3.364 billion (3 billion euro). Back then, Fallico said that Intesa was in no rush to complete the syndication deal.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Naomi on May 26 2017 said:
    Italian bank and Russian company are oxymorons.
  • Naomi on May 25 2017 said:
    Add some Venezuelan paper to improve the quality of this gem.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play