Sberbank, Royal Bank of Scotland Organize Loan for NUGC LLC
OREANDA-NEWS. August 24, 2012. Sberbank of Russia and The Royal Bank of Scotland acted as the organisers of a USD 500 mln three-year loan for Novy Urengoy Gas-chemical Complex LLC (hereinafter referred to as “NUGC LLC”), reported the press-centre of Sberbank.
The loan is made up of two tranches. With regard to the tranche of Sberbank of Russia, the loan agreement stipulates a currency coupon swap organised by Sberbank of Russia and The Royal Bank of Scotland. Based on information available, this sort of innovative structure with a built-in coupon swap has not previously been applied in Russia.
The credit resources will be used for general corporate purposes, including refinancing of existing loans issued to NUGC LLC. A surety from Gazprom OJSC will serve as collateral for NUGC LLC’s obligations for the loan.
“This deal goes to show that as a corporate investment bank, Sberbank of Russia offers its clients not only credit products, but also comprehensive financial solutions,” commented Alexey Grenkov, Managing Director and Head of the Division of Client Managers of Sberbank of Russia OJSC’s Department of Corporate Clients.
“This deal highlights how RBS’ strong structuring capabilities and experience in the derivatives market allow it to provide novel and bespoke financing solutions for its clients, and further builds on RBS’ breadth of experience and product offerings with respect to derivative linked funding solutions,” Douglas Kennedy, Country Executive, Central and Eastern Europe, The Royal Bank of Scotland, commented.
NUGC LLC is a 100% subsidiary company of Gazprom OJSC and operates the project for constructing a gas-chemical complex for producing low-density polyethylene in the Yamalo-Nenets Autonomous Region with an annual production capacity of up to 400,000 tonnes. The project is being implemented as part of the strategy of Gazprom OJSC for widening the production of gas-chemical products.
Currently the project is in the investment stage.
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