“Gazprom” has received in the Chinese Bank record a loan

Representatives “Gazprom” and Bank of China signed in Shanghai the agreement on granting the Russian loan companies in the amount of €2 billion for a period of five years.

“In the history of “Gazprom” this is the biggest deal in terms of funding attracted directly from one credit institution, and the first bilateral loan agreement with the Chinese Bank”, — stated in the message “Gazprom”.

Recall that in August 2015, Gazprom has attracted a loan to the club from a consortium of Asian banks for $1.5 bln at LIBOR+3.5% per five years, agent for the deal was made by the Corporation China Construction Bank.

“Discovering the Chinese market, “Gazprom” intends to continue cooperation with our Chinese partners, including in the framework of deals in project Finance”, — said the Chairman of the Board “Gazprom” Andrey Kruglov, signed an agreement with Bank of China.

Among the possible tools to attract funding Kruglov called then syndicated loans, project financing and bond issuance denominated in Asian currencies.

However, in December 2015, it became known that the company plans to intensify efforts to attract investors from the West. Analyst ING Egor Fedorov then explained that reliance on fundraising in Asia is not fully justified.

“So far, Chinese banks are not very willing to allocate direct credits of the Russian companies, preferring investments, project financing and prepayment on major energy supplies. Besides, Russian borrowers are often not satisfied with rates of Chinese banks,” — said Fedorov.

Bank of China is a large international banking group whose activities include banking operations, investment activity, services in the field of insurance and leasing. The total value of assets is more than 16 trillion yuan ($2.4 trillion).