Sovcomflot Targets at Least $500 Million in Moscow IPO
Sovcomflot plans to raise at least $500 million in an initial public offering (IPO) on the Moscow Exchange, Russia’s top shipping company said on Tuesday, in a deal that could value it at roughly $10 billion according to sources.The move by the state-controlled firm comes as Russian airline Aeroflot also plans to raise capital in a secondary public offering (SPO).For Aeroflot, the cash is needed to fight the economic fallout from the COVID-19 pandemic.Sovcomflot (SCF) which is raising money to spend on new projects and reduce debt aims to list in early October…
Sberbank, Sovcomflot Sign $106m Finance Deal
The largest bank in Russia Sberbank and shipping company Sovcomflot have signed a new USD 106 million project financing agreement, with a term of up to 14 years. The funds will finance the construction of a high ice class Arctic shuttle tanker (Arc7) for the Novy Port project, under a long-term agreement with Gazprom Neft. This is the third major transaction of its kind between Sberbank and Sovcomflot. The first joint project between the companies was in 2015, to finance the construction of three Arctic shuttle tankers to transport crude oil from the Novy Port field. That agreement set an important precedent for Russian domestic credit institutions, and was named “Deal of the Year” by the international publication Marine Money.
Russia Wants to Sell Sovcomflot to Small-stake Investors
Russia plans to sell part of state shipping firm Sovcomflot next month, hoping to draw in a wide range of small-stake investors rather than a strategic buyer who could threaten Moscow's control of the group, banking and industry sources say. The current era of low tanker market prices is far from the ideal time for Sovcomflot to raise revenue with a share offer, as freight rates were at their highs in 2015. Sovcomflot operates the world's second largest fleet of oil tankers. But…
Sovcomflot $ 1.26 bln Debt Financing Complete
SCF Group completed a series of financing transactions in the total amount of USD 1.26 billion. The deals include USD 750 million of unsecured public debt and USD 512 million of bank loans raised for purposes of funding the fleet renewal and expansion programme and for the refinancing of maturing debt. The latest in this series were new long-term credit facilities for a total amount of USD 252 million signed in August 2016, with a number of international banks including: Citibank; DVB Bank; ING Bank; Nordea Bank and Unicredit Bank. The funds raised are being used to finance the acquisition of nine ice-class tankers and two multifunctional icebreaking supply vessels as well as for refinancing of the Group’s existing bank debt.
Rosneft Delivers First Gasoline Cargo to Asia-Pacific
Energy giant Rosneft said on Thursday its trading arm had delivered an inaugural gasoline cargo to the Asia-Pacific, marking what could be Russia's first foray into a region dominated by OPEC producers from the Gulf. The 200,000-barrel cargo, bought by Rosneft from the international market and taken by Indonesian state energy company Pertamina, was delivered on free-on-board (FOB) terms to Malaysia. Rosneft declined to say from which refinery it had received the cargo. It also did not say from or to which ports it was being delivered. The cargo was shipped to Pertamina within a term agreement for the delivery of 1.2 million barrels signed between the companies in June, Rosneft said.
Sovcomflot Group, Sberbank CIB Sign Credit Facility Agreement
Sovcomflot Group and Sberbank CIB have signed a 14-year $340 million credit facility agreement to finance the construction of three Arctic shuttle tankers for the Novy Port project (project operator: Gazprom eft). Novy Port is one of the largest oil and gas condensate deposits on the Yamal peninsula in Russia. The vessels will serve as part of project infrastructure designed to enable year-round shipment of crude oil from an offshore loading terminal in the Gulf of Ob. The commercial production from the field will start in 2016. The transaction involves Sberbank Europe AG, a subsidiary bank of PJSC Sberbank. Commenting on the transaction…
Russia Sacrifices Gazprom Profit for Politics in Ukraine
Russia's top natural gas producer, Gazprom, will eventually lose more than it gains from raising the gas price for Ukraine by 80 percent, analysts said on Friday, predicting Kiev would cut purchases and fail to pay in full. Gazprom on Thursday announced a price rise for Ukraine to $485 per 1,000 cubic metres, the second increase in three days. The $485 price is the highest of any Gazprom customer and compares with around $370 on average for clients in the European Union. Ukrainian Prime Minister Arseny Yatseniuk said the increase, two weeks after Moscow annexed Ukraine's Crimea region, was unacceptable and warned he expected Russia to step up pressure by limiting supplies to Ukraine.
Ukraine in "Emergency" Talks Over Gas Imports
Ukraine is in emergency talks with European neighbours on the possibility of importing natural gas from the West, following "political" rises in the price it pays for Russian gas, Prime Minister Arseny Yatseniuk said on Friday. The urgency of securing affordable supplies for Ukraine's struggling economy has grown since Moscow raised its discounted gas tariff for Kiev twice this week, almost doubling it in three days. Relations between Ukraine and Russia have turned hostile since popular protests in Kiev ousted pro-Russian president Viktor Yanukovich in February, after which Russia seized Ukraine's Crimea region and formally annexed it last month. The dispute has widened into the biggest stand-off between Russia and the West since the end of the Cold War.
