Glencore announced the closure of the deal to buy stake in Rosneft

Glencore announced the closure of the deal to buy stake in Rosneft


The plant of “Rosneft” in Novokuybyshevsk

Photo: Bloomberg/Andrey Rudakov

Calling the transaction is completed, Glencore gave no details about how it was financed which caused a lot of questions deal

Swiss commodities trader Glencore announced the closing of the purchase transaction, together with the Qatari investment Fund Qatar Investment Authority (QIA) package 19.5% stake in Rosneft.

“The company reports that a final agreement is reached and the closing of the transaction described in its report, dated 10 December 2016”, — stated in the message Glencore called “New strategic partnership Glencore and Qatar Investment Authority in connection with Rosneft.

In the message Glencore 10 Dec 2016 statedthat QIA had agreed about parity participation in the consortium that bought the shares “Rosneft”.

The agreement on the sale of “Rosneftegaz” 19.5% stake in Rosneft and Glencore QIA was concluded on 7 December 2016. The amount of the transaction amounted to €10.2 billion (692 billion at the exchange rate on 6 December).

Later, Glencore announced that it will pay from its funds only €300 million, €2.5 billion will make QIA, and the remainder of the transaction will be financed at the expense of the pool of banks (including Russian) led by Italy’s Intesa Sanpaolo.

In Intesa Sampaolo confirmed the funding for the deal, reports the Agency Reuters. The Bank has announced plans to provide loan amounting to 5.2 billion euros.

On December 16 CEO of “Rosneft” Igor Sechin reported to Russian President Vladimir Putin that all funds from the sale of 19.5% of Rosneft shares are listed in the Federal budget.

However, on 20 December, the Intesa Sanpaolo Bank announcedthat money to a consortium of buyers of Rosneft did not give and potential participation in financing the purchase of a 19.5% stake in the company “still being assessed”. The press service of Glencore refused to comment on the RBC question about where the consortium took the money to pay for the shares of “Rosneft”.