Gazprom to get $450m credit

Gazprom and four European banks, ABN AMRO, Dexia, HVB and WestLB AG, have signed an agreement on giving a $450m credit to the Russian gas holding. This credit has been the second largest syndicated credit, which has been given to a Russian company since 1998, the press service of the Russian gas giant reported. This is evidence of western investors' growing confidence in the Russian market.

The credit's funds will be allocated for modernizing and improving the unified system of gas supplies of the Russian Federation and developing gas production facilities, including further exploration of the Zapolyarnoye gas field. It will enable Gazprom to fulfill its obligations to European gas consumers.

The credit's period is 5.5 years and it is guaranteed by Gazprom's revenues from a long-term contract on gas exports.

The banks expect to finish the syndication of the credit at the beginning of 2003. Taking into account the fact that Gazprom's loans are well known and clearly structured, organizers of the credit believe that the credit will be accepted favorably on international financial markets.

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