Tatneft signs $ 200 mm five-year loan with two banks

Tatneft, an oil company based in the Russian republic of Tatarstan, announced recently that it had concluded a new credit deal with two banks. The banks -- Zenit Bank of Russia and Credit Suisse First Boston (CSFB) -- have agreed to lend Tatneft the sum of $ 200 mm. The credit is secured by Tatneft's oil exports and must be repaid over a period of five years.
The oil company plans to use most of the funds to cover the cost of work at the Nizhnekamskneftekhim oil refinery. Tatneft, which holds a 63 % stake in the refinery, has said it plans to spend $ 263 mm on construction work at Nizhnekamskneftekhim this year.

The deal with CSFB and Zenit Bank was the third loan agreement Tatneft has signed since October of 2000, when it reached agreement with creditors on restructuring of its debts. In late 2001, Tatneft signed a two-year credit agreement worth $ 125 mm with Germany's Commerzbank as well as an 18-month deal worth $ 100 mm with France's BNP Paribas.