TNK-BP lines up $2 billion loan
BP ‘s Russian joint venture TNK-BP secured a three-year $2 billion loan from a club of 16 international banks for general corporate purposes, TNK-BP said today.
Upstream staff 21 October 2010 13:13 GMT
The annual interest rate is 1.75% above LIBOR.
The facility consists of two tranches amounting to $1bn each. The first tranche will be used to cover the financing requirements envisaged by the company’s 2010 business plan.
“The loan will provide us with greater financial resources and flexibility to manage our future growth opportunities,” Reuters quoted TNK-BP chief financial officer Jonathan Muir as saying in a statement.
Last week, BP agreed to sell a package of oil and gas fields in Vietnam and Venezuela to TNK-BP for $1.8 billion as the London-based oil major raises cash to pay for its Gulf of Mexico oil spill.