Interfax quoted Mr Vladimir Kushnarev VP of OJSC Transneft said OJSC Transneft is still not planning to raise external loans.
He said that Transneft recently raised a large Chinese loan. "There are other forms of investment, such as increasing charter capital," he said.
It was earlier reported that in February Transneft signed an agreement with China Development Bank to raise USD 10 billion with a floating rate dependent on the LIBOR set for payment over 20 years in equal installments. The loan has a five year grace period. The loan agreement's rates foresee a single payment in the six months until January 1st 2011 and monthly payments after this date.
The funds will be earmarked for the construction of pipelines in Russia, including the Skovorodino-Chinese border section of the Eastern Siberia-Pacific Ocean pipeline. The loan is part of an agreement between Russia and China for oil partnership. This agreement is binding for 23 years and starts the implementation of loans agreements between Rosneft, Transneft and China Development Bank worth USD 25 billion in exchange for long-term supply of oil from Russia to China through ESPO.
