3 November – LAWFUEL – The Law News Network – Linklaters has recently advised on the two largest financings in Russia to date.
In the first, the firm advised ABN AMRO, Barclays Capital, Dresdner Kleinwort Wasserstein, JPMorgan and Morgan Stanley as arrangers of the US$7.5 billion syndicated loan facility for Rosneftegaz, a company wholly owned by the Russian Federation and established to hold Rosneft, one of Russia’s biggest oil companies.
The facility will finance the acquisition of a 10.74 per cent stake in Gazprom, the world’s largest natural gas producer, thus allowing the Russian Federation, through Rosneftegaz, to increase its direct and indirect stake in Gazprom to 50 per cent plus one share. This will in turn facilitate the removal of existing restrictions on trading in Gazprom’s shares by non-Russian investors.
In the second, the firm advised Gazprom on its US$13 billion syndicated loan facility; the facility was arranged by ABN AMRO, Citigroup, CSFB, Dresdner Kleinwort Wasserstein, Goldman Sachs and Morgan Stanley. The facility will be used to fund Gazprom’s acquisition of a stake in Sibneft, the Russian oil company. This is the largest financing in Russia to date.
The Linklaters team advising on the Rosneftegaz loan was led by partners John Tucker in London and Dmitry Dobatkin in Moscow, with associates David Irvine, Dmitry Suschev and Shelley Mottershead.
Partner Michael Bott in Moscow advised Gazprom on its loan.
Michael Bott, Moscow head of banking, said:
“Our role in these ground-breaking transactions confirms that banks and borrowers choose Linklaters for their most complex financings in Russia.”
John Tucker, global head of banking, said:
“Russia is one of our key markets and we are seeing a great deal of work there. As the two largest syndicated deals closed in Russia to date, these transactions are evidence of the increasing emergence of Russia onto the international finance stage and underlines Linklaters continued strength in this country.”