Western banks agree to lend Gazprom record $12 billion

A consortium of banks agreed today to lend Gazprom $12 billion, a record for a Russian company, to finance the takeover of oil…

A consortium of banks agreed today to lend Gazprom $12 billion, a record for a Russian company, to finance the takeover of oil firm Sibneft, senior bankers said today.

"We have agreed ... It's all going ahead," said one banker who participated in a meeting with top Gazprom officials in Moscow.

Another banker added: "We expect to get credit committee approvals by the end of this week."

They said the lending, subject to the approvals, would be in four portions including a one-year bridge loan of at least $5 billion. The remainder of the package will be a syndicated loan in three tranches of 18 months, three years and five years which will be refinanced partly via a bond sale.

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The group of Western banks comprised: ABN Amro AAH.AS, Dresdner Kleinwort Wasserstein, Citigroup, Morgan Stanley, Goldman Sachs and Credit Suisse.