Bashneft and Gazpromneft debate pre-exports

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02 February 2010

Russian oil producers Bashneft and Gazpromneft are deciding between pre-export financings or bond issues as they approach bankers for new loans.

Russian oil producers Bashneft and Gazpromneft are both in the market for jumbo financings.

Banks are lining up to land the mandates but the producers are still debating about whether to tap the bond market or use a pre-export financing.

Market insiders confidently predict that that if both companies do decide to undertake pre-export financings they will be looking to secure at least $1 billion each with a push towards five-year tenors.

Russian oil producer Tatneft is already back in the market as it negotiates a $2 billion refinancing to finance construction of its Taneco refinery project in the Republic...

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Poll

Gazpromneft stunned the market this week when it was revealed pricing for their five-year $1 billion pre-export financing was rumoured to be just above 300 basis points over Libor. Is the deal likely to be a syndication success?

Yes - this seems like a sensible pricing benchmark, why not?

No - are you crazy? These prices are ridiculous. What were these banks thinking?

27%

Yes - but for all the wrong reasons. A lack of other deals in the market, and the promise of future business with Gazpromneft will make it hard to ignore but don’t expect many to take up big tickets with this deal. There are much better deals out there.

64%