Eurobonds | |||
Pursuant to its debt financing strategy, in September 2005 TNK-BP established the unsecured Guaranteed Debt Issuance Program. Initially the framework size of the Program was $5 billion; however, in October 2007 it was increased to $8 billion.
Since the establishment of the Program, TNK-BP has executed three Eurobond issues out of the Program:
- On 13 July 2006 TNK-BP successfully placed 5 and
10- year Eurobonds totaling $1.5 billion. This issue constituted the first drawdown under the Program and was voted the best corporate bond deal in Eastern Europe in 2006 by market participants in Euroweek magazine.
At the time of placement this issue became in aggregate one of the largest private corporate debt transactions in the CIS region, and also the first
- On 19 March 2007 TNK-BP placed its second Eurobond issue comprising of 5 and
10- year tranches in the total amount of $1.3 billion. The proceeds were used to repay $1.2 billion of short-term debt. As a result, average life of TNK-BP’s debt portfolio rose to over 4 years increasing share of long-term debt to around 80%. - On 3 October 2007 TNK-BP placed its third Eurobond issue comprised of 5.5 and
10 .5-year tranches in the total amount of $1.7 billion.
TNK-BP Eurobonds characteristics
| Issue parameters | Series 1 | Series 2 | Series 3 | Series 4 | Series 5 | Series 6 |
|---|---|---|---|---|---|---|
| Listing | Luxernbourg Stock Exchange | |||||
| Issuer and Guarantor | TNK-BP Finance (Issuer) and TNK-BP International (Guarantor) | |||||
| Placement date | July 2006 | July 2006 | March 2007 | March 2007 | Oct 2007 | Oct 2007 |
| Rate (fixed) | 6.875% | 7.50% | 6.125% | 6.625% | 7.50% | 7.875% |
| Amount | $500 mln | $1000 mln | $500 mln | $800 mln | $600 mln | $1100 mln |
| Maturity | 5 years | 10 years | 5 years | 10 years | 5.5 years | 10.5 years |
| Joint Lead Managers and Bookrunners | Citigroup, Credit Suisse, UBS, BNP Paribas | ABN Amro, Barclays Bank and Citigroup | Credit Suisse and UBS | |||
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