Pipeliners

RBC, 15.04.2005, Moscow 13:22:22.Transneft has signed an agreement with Barclays Bank on a co-loan worth USD250m for a term of 3 years. The loan will be discharged in three payments after a two-year grade period expires. The borrowing cost is set at 115 basis points in addition to the LIBOR dollar rate for the whole period of the loan, which is currently the lowest cost among corporate unsecured loans on the Russian stock market. A group of 19 banks was formed and assumed obligations to grant a credit worth a total of USD400m. Taking the favorable demand-and-supply situation into account, Transneft decided to raise USD50m more from the initial target of USD200m. According to Transneft president Semen Vainshtok, the funds raised will be appropriated to finance third-stage construction of the Baltic Pipeline System, and re-finance part of the company's debts arising from the completed stages of the Baltic Pipeline System project. Transneft proposes to close the Baltic pipeline expansion project in the first quarter of 2006.