* Raises $16.8 bln in loans to buy out BP stake in TNK-BP
* Agrees terms on supply deals with Glencore, Vitol
* Plans to sign 5-yr deals to supply 67 mln T of crude
* Rosneft's $55 bln takeover of TNK-BP is Russia's biggest
* The loans pay less than 3 pct in annual effective rate -
MOSCOW, Dec 24 (Reuters) - Rosneft, seeking to
finance Russia's largest-ever takeover deal, has raised $16.8
billion in bank loans and agreed on long-term trade finance
deals with the world's largest oil traders, Glencore
The state-controlled company said on Monday the loans raised
from Western banks would be sufficient to cover its acquisition
of the 50 percent of Anglo-Russian oil firm TNK-BP
which it is buying from BP for $27 billion in cash and
The company also said it has agreed terms with Glencore and
Vitol to supply them with up to 67 million tonnes of crude oil
over five years under a trade finance deal, equivalent to around
270,000 barrels a day of oil.
Rosneft is due to buy the rest of TNK-BP from the AAR
consortium of Russian-born business tycoons for $28 billion,
completing the takeover of Russia's third-biggest oil producer
to make Rosneft the world's largest listed oil company, with
daily output equivalent to 4.6 million barrels per day.
It was not clear whether the oil supply deals would help pay
for the purchase of AAR's stake in TNK-BP but sources close to
Rosneft and potential lenders told Reuters recently that Rosneft
had been talks about using future oil exports as collateral to
help pay for the TNK-BP deal.
Industry sources said the deals will give Rosneft around $10
billion in advance payments from the traders, who will in turn
borrow the money from their banks, in return for securing
long-term access to oil from the world's largest-producing
"The price formula is in line with the prices Rosneft
receives for crude at medium-term tenders," Rosneft's chief
executive Igor Sechin said in a statement.
Assuming the full volumes are delivered, Rosneft would
supply the oil traders with around 270,000 barrels per day of
oil - or over a tenth of its current output. The pricing terms
were not diclosed, nor was the level of prepayment.
If the oil price averages $100 per barrel, the contracts
would on paper be worth around $50 billion.
Glencore's chief executive Ivan Glasenberg said on Monday
the announced agreement "further cements our relationship with
one of the world's leading oil and gas companies", while Vitol's
president and chief executive, Ian Taylor, hailed his deal as a
"long term, strategic partnership" with Rosneft.
Rosneft will buy out BP's half stake in TNK-BP for $17.1
billion in cash and 12.8 percent of its own shares, bringing
down the curtain on a profitable but fractious alliance between
BP and the oligarchs struck back in 2003.
In the second leg of the takeover, Rosneft has agreed to pay
$28 billion in cash to the AAR consortium, representing
billionaires Mikhail Fridman, German Khan, Viktor Vekselberg and
Subject to regulatory approvals, the takeover is expected to
close in the first half of 2013.
Commenting on the bank financing it had raised for the
purchase of BP's 50 percent in TNK-BP, Rosneft said it had
obtained a 5-year loan of $4.1 billion and a 2-year loan of
$12.7 billion from a group of international banks.
The banks include Bank of America Merrill Lynch, Barclays
Bank, BNP Paribas, BTMU, Citibank, Credit Agricole, ING Bank,
Intesa Sanpaolo Banking Group, J.P. Morgan, Mizuho Corporate
Bank, Natixis, Nordea Bank, SMBC, Societe Generale and Unicredit
Bank. All are acting as mandated lead arrangers and lenders.
"The loans pay less than 3 percent in the annual effective
rate. The deal is extremely beneficial for Rosneft. There is
huge appetite for Rosneft financing among the banks, the deal
was agreed in a very short period of time," a banking source
Sources familiar with the matter have said that Rosneft
could also refinance up to $10 billion of the cost of the TNK-BP
takeover deal on the bond market, ultimately raising more than
it needs to close the transaction.
"The company has lots of fundraising options. It has lots of
cash on hand, it secured the deal with traders and it
successfully issued a Eurobond," the source said.
Rosneft declined comments on financial details of the deal.