OREANDA-NEWS. May 27, 2011. A fundraising deal totaling EUR 1.1 billion was financially closed for the Yuzhno-Russkoye oil, gas and condensate field development project owing to the long-term joint efforts of Severneftegazprom and its shareholders – Gazprom, BASF SE and E.ON AG. The loan was issued by an international consortium comprising 14 foreign and one Russian bank (Gazprombank). The loan maturity date is set for December 31, 2018 with an early repayment option.

 In 2007 the project fundraising for Severneftegazprom's activity was defined as the financing priority by the Shareholders Agreement. At the preparatory stage the foreign banks issued short-term multi-currency loans to the company against the shareholders' guarantees. The closed deal is unique not only by raising the loan directly from the foreign financial markets, but also by the fact that financing was obtained by the company registered in Russia and receiving proceeds in rubles under the gas supply contracts regulated by the Russian legislation.

 According to Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee and Chairman of the Severneftegazprom Board of Directors, “Successful project fundraising is far beyond a mere internal event of Severneftegazprom. This is not just a paramount, I would say historical, milestone in the company's evolution, but also a result of successful joint efforts taken by Gazprom and its partners – subsidiary companies of BASF SE and E.ON AG. Gazprom opens new prospects for the efficient large-scale infrastructural projects implementation while their fundraising can be arranged using the experience gained by Severneftegazprom.”

 Stanislav Tsygankov, Director General of Severneftegazprom noted that, “Severneftegazprom became the first producing company of Gazprom that managed to raise credit resources in the foreign capital markets on the basis of the project fundraising principles. I am sure that the successful deal closing is a positive experience for Severneftegazprom development as a leading company adhering to international standards.”
Background

 Severneftegazprom is a gas producing company of Gazprom Group. The company holds the license for hydrocarbons development, exploitation and production in the Yuzhno-Russkoye oil and gas field located in the Krasnoselkupsky District of the Yamal-Nenets Autonomous Okrug, Tyumen Oblast. ABC1+C2 natural gas reserves of the field exceed 1 trillion cubic meters. In October 2007 the field was put into commercial operation. In August 2009 the Yuzhno-Russkoye field reached its design capacity of 25 billion cubic meters per year one year ahead of the schedule.

 Severneftegazprom has the following shareholding structure: Gazprom holds 50 per cent plus six ordinary registered shares, BASF SE holds 25 per cent less three ordinary registered shares plus three preference non-voting shares, E.ON AG holds 25 per cent less three ordinary registered shares plus three preference non-voting shares.