Long-term loans and credits to Gazprom Neft rose to USD 6,450 bn during 2011, representing an increase of 1.5% from USD 6,357 bn at the end of 2010. The current part of the long-term debt as of December 31, 2011 was USD 1,030 bn. Meanwhile, the Company’s short-term debt dropped by 24% in 2011 to USD 247 mn from USD 325 mn in 2010.
New borrowing in 2011 was in the form of club loans and ruble bonds.
The currently effective loan contracts contain terms that impose certain restrictions on corporate performance ratios such as consolidated EBITDA to consolidated interest payable, consolidated loan debt to consolidated net asset value, and consolidated loan debt to consolidated EBITDA. The Company complied with all such requirements as of December 31, 2011.
Loan agreements with Sberbank of Russia were signed in December 2011; these funds are expected to be drawn mainly during the first and second quarters of 2012.
Financing plans in 2012
Gazprom Neft plans to source borrowing in excess of USD 2 bn in 2012. The following instruments might be used:
- ruble bonds,
- euro bonds,
- bilateral loans,
- club loans,
- syndicated loan,
- ECA financing,
On February 7, 2012 the Company successfully completed placement of its series-11 bonds (10-year maturity) with a total value of RUB 10 bn. The yield was set at 8.25% with a put option exercisable three years after the placement.