Rosneft has taken TNK-BP’s free funds

Rosneft, that has recently completed the deal on the purchase of TNK-BP, has started to collect the free monetary funds from the accounts of its affiliates. The total loan the company has to pay in 5 years will be almost $10 bln. So Rosneft will obtain funds by passing the minority shareholders of TNK-BP Holding, will reduce the value of the affiliate and will gain an opportunity to purchase the stakes of the minority shareholders at a good price, experts think.

The Board of Rosneft approved the deals on the attraction of the loans for the total amount of 152 bln roubles and $4.8 bln for 5 years from the structures controlled by TNK-BP, the company reported yesterday. The total amount of the deals taking into account the interest will make up 197.6 bln roubles and $6 bln. In particular, Rosneft will borrow 38 bln roubles from TNK-BP Holding, 38 bln roubles – from TNK-BP Management, 38 bln roubles from Verkhnechonskneftegas and 38 bln roubles from TNK-Uvat as well as $1.2 bln from TNK-BP International Limited, $1.2 bln from TNK Industrial Holding Limited, $1.2 bln from TNK-BP Finance S.A. and $1.2 bln from TOC Investments Corporation. According to the representative of Rosneft, this attraction of loans is held in the framework of the management over the temporarily free monetary funds of the affiliates. This is a standard practice applied at Rosneft and now in the united company as well, he said.