The shareholders of NOVATEK approved a credit from Sberbank and Gazprombank for “Yamal LNG”

On the yearly meeting the shareholders of the largest Russian independent gas manufacturer, the company “NOVATEK” approved attracting of financial means for the project “Yamal LNG” from Sberbank and Gazprombank on the sum 3 milliard 600 million euro, as RIA “Novosti” informs.

NOVATEK will give 50.07% of shares of “Yamal LNG” belonging to the company as collateral for the credit. “Yamal LNG” and Yamal Trade are credit users, Gazprombank and Sberbank are creditors. Three shareholders of the project – NOVATEK, Total and China National Oil and Gas Exploration and Development Corporation are sponsors on the credit agreement. NOVATEK will buy back the company’s shares from shareholders, who will disagree with the transaction, on 571.34 rubles per a share. The term of the credit will make not longer than 16 years. Repayment of the loan is foreseen in semi-annual installments, starting on the 15th of December of 2019, but early repayment is also foreseen. The interest rate: EURIBOR 6M (indicative interest rate for six-month loans) at the condition if EURIBOR rate is negative, it is considered equal to zero, plus a margin of no more than 4.8 percent per annum. In the case if NOVATEK buys any additional shares of “Yamal LNG” the collateral will be distributed also to them.