OREANDA-NEWS. August 22, 2011. TNK-BP entered into a USD 1.5bn unsecured loan facility agreement with a club of 10 international banks, reported the press-centre of TNK-BP.

The new facility has a maturity of 4 years and bears an interest rate of 1.30% per annum above LIBOR. The facility is to be repaid in equal quarterly installments starting 2.5 years after the drawdown. The proceeds of the transaction are to be used for general corporate purposes.

The following banks acted as Mandated Lead Arrangers of the transaction: Bank of America Merrill Lynch, The Bank of Tokyo-Mitsubishi UFJ, Bayerische Landesbank, Citigroup, Credit Agricole CIB, HSBC, Mizuho, Nordea, SMBC and WestLB.

The joint coordinators of the transaction were Bank of America Merrill Lynch (also acting as documentation agent) and The Bank of Tokyo Mitsubishi UFJ (also acting as facility agent).

Commenting on the transaction, Jonathan Muir, Chief Financial Officer of TNK-BP, said: “TNK-BP demonstrated its ability to complete a successful transaction despite current market volatility. Participation of 10 major international banks and competitive pricing are another evidence of the strong financial standing of the company.”