Glencore explained the participation of VTB in the privatization of “Rosneft”


The representative of Glencore, commented on the participation of VTB in the privatization of “Rosneft”. Previously reported that the Bank provided a bridge loan Singapore QHG Shares for the purchase of shares in a Russian company. At the time of receipt of funding QHG Shares was in the sole ownership of Glencore (now belongs to a consortium of Glencore and Qatar). “It was an interim deal is required to close the transaction [the privatization of 19.5% of shares of “Rosneft” —], — said the representative of Glencore.

15 December 2016 VTB and QHG Shares entered into a loan agreement under which the state Bank issued Shares QHG 692,395 billion rubles on bail of a privatization package of Rosneft shares, the Shares QHG filed with Singapore regulators (have). The terms of the loan such as period and rate, were not disclosed. Bridge loan to 692 billion rubles issued VTB, confirmed a source close to the buyers of Rosneft’s shares. In December 2016, the sources said that the financing transaction will involve Gazprombank. Press-service VTB have refused comments.

The seller shares (“Rosneftegaz”) and buyers (Qatar and Glencore) had actually conducted a currency swap with the mediation VTB: first QHG Singapore Shares took a loan from VTB rubles, which Rosneftegaz has transferred to the budget in payment transactions, then the ruble debt was purchased by Rosneftegaz. But apparently, the consortium returned it in euros — at the beginning of January, when Italian Bank Intesa has provided partners with a loan.

According to the Director investitsionno-trading Department “Absolutbank” Sergei Mikhailov, taking into account the cost of money on interbank market and margin by 2-3 percentage points, VTB could issue QHG bridge loan at a rate of 11-12% per annum. “It’s short money, so this rate could be even higher than in conventional lending. On the other hand, Glencore very good borrower and credit risk is minimal,” — said the banker. Thus, for 20 days (from 15 December to 3 January) VTB could earn a bridge loan of up to 4.3 billion rubles, estimated .

“All the tasks under this transaction was fully resolved, — said the press-Secretary of Rosneft Mikhail Leontyev. And this sequence (first bridge loan, then the amount in euros from buyers. —) due to the fact that at the same time solved different problems. One of the tasks, in particular, was to avoid volatility in the currency market.” Thus, we are talking about funding the privatization of “Rosneft”, and conversion means in the course of this transaction follows from the words of Leontiev.

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