Sergey Bogdanchikov, president of the state-controlled oil company Rosneft
Photo: Dmitry Azarov
| Other Photos |
 |
|
 |
Hunting For Money Worldwide
Russia’s state-run oil company Rosneft is hunting for money to settle accounts with foreign banks, where it raised $22 billion to buy out Yukos assets. One of the options could be selling a percent to a new strategic investor, Indian ONGC, according to The Financial Express.
Russia has offered to India a percent in Rosneft for roughly $1 billion, Indian Financial Express reported Tuesday referring to anonymous sources. Indeed, in view of today’s capitalization of Rosneft, the estimated price for this stake slightly exceeds $900 million. In return, India intends to propose to Rosneft to acquire the stocks of ONGC, The Financial Express said.
Though Rosneft declined to comment officially, a source with the company forecasted that the Indians would hardly get the stake. But the analysts are more optimistic about ONGC chances. Rosneft needs money to cancel the loan of $22 billion, which it raised to buy out Yukos assets. Of that amount, $14.5 billion has been spent already, and the company needs another $7.1 billion for tenders of May 10 and 11.
Being the biggest creditor of Yukos, Rosneft will derive roughly $10 billion from the sale of its assets. It will have to pay profit tax, so it needs some new sources of money in any case.
A single financial instrument won’t be enough for Rosneft, the analysts speculate. According to Reuters, this state-run company of Russia is willing to raise a syndicated loan of $2 billion to $3 billion, place $2-billion eurobonds for seven to ten years and is deliberating whether to launch convertible bonds for $1 billion to $2 billion.
www.kommersant.com
All the Article in Russian as of May 10, 2007
|
|
|
