OREANDA-NEWS. August 16, 2010. TNK-BP has asked 16 banks to confirm acceptance of revised terms for an unsecured USD2bn club loan, according to Reuters. As previously reported, half of the loan is slated for general corporate purposes, with the remaining USD1bn to be utilized for acquisitions. Earlier TNK-BP had intended to take a loan for USD700m in three years with the possibility of increasing the loan to USD1bn., reported the press-centre of OTKRITIE Financial Corporation.

View: We view the news as marginally positive for TNK-BP shares as the company could increase its foreign assets and become more geographically diversified, along the lines of other Russian oil majors (indeed, TNK-BP is considering the acquisition of BP's Venezuelan assets). That said, it is difficult to assess the impact on TNK-BP at this stage, as greater clarity is needed concerning the quality of these assets along with some indication of the profitability of their business.

Valuation and Action: TNK-BP trades on a 2010 EV/EBITDA of 2.6x. We reiterate our BUY rating on TNK-BP Holding, with a target price of USD2.52/share.