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Rosneft – pre-export financing

23 March 2009

Record deals in the Russian oil sector

Read more: [Rosneft] [Russia] [oil] [gas] [BP] [Shell] [Vitol] [Denton Wilde Sapte]

The Rosneft financings of 2008 were a real landmark in the Russian oil and gas market as well as the international debt market. In total they raised $6.625 billion for the company, albeit through two quite distinctive transactions but with similar structures. Both transactions win Deal of the Year awards with Trade Finance Magazine, and we combine them here for ease of comparison of the mandated lead arranger (MLA) groups. Acting as coordinating MLA, bookrunner and facility and documentation agent, Deutsche Bank signed two pre-export loans, in February and August 2008, with Rosneft worth $3.425 billion and $3.2 billion respectively....


Poll

Will Russia’s recent ban on grain exports result in a significant rise in private risk insurance claims from grain traders unable to fulfil their contracts?

Yes – there will be more claims. The government’s actions allow traders, with PRI cover, to make claims through contract frustration.
8%
No - the majority of Russia’s wheat production, some 70%-80%, is used for domestic consumption so the contracts represent only a small portion of the total wheat market, limiting the amount of potential claims.
23%
No - traders had a week’s notice before the ban allowing them to secure alternative supplies to fulfil contracts stated as optional origin.
23%
Maybe - but claims are likely to be limited to traders dealing in soft wheat whose contracts demand they source wheat only from Russia.
46%

Quote

A collateral manager may manage collateral well but it won’t tell you if someone’s about to go belly up.

Steven Pout, Agriservice - Brazil: Agri-sector bounces back - Trade Finance, July/August 2010