Moscow, 21 October 2010 - On 14 October 2010 TNK-BP entered into a US$2.0bn unsecured dual tranche facility agreement with a club of international banks.

The new facility is the largest debt transaction arranged by TNK-BP since inception. The maturity of the loan is 3 years and the interest rate is 1.75% per annum above LIBOR. The facility is to be used for general corporate purposes.

The facility consists of 2 tranches amounting to $1bn each. The first tranche will be utilized to cover the financing requirements envisaged by the Company`s 2010 business plan. The second tranche is available for TNK-BP in a form of a committed line and could be drawn by the Company in full or in part within 6 months depending on the Company`s financial needs.

The facility generated a strong demand in the bank market which resulted in 16 banks participating in the transaction, namely: Bayerische Landesbank, BANK OF AMERICA MERRILL LYNCH, The Bank of Tokyo-Mitsubishi UFJ, Ltd., BNP PARIBAS (SUISSE) SA, CITIBANK INTERNATIONAL PLC, LONDON, Credit Agricole Corporate & Investment Bank, Deutsche Bank, HSBC Bank plc, ING Commercial Banking, Intesa Sanpaolo SpA, Mizuho Corporate Bank, Ltd., Nordea, The Royal Bank of Scotland, SOCIETE GENERALE, Sumitomo Mitsui Banking Corporation Europe Limited and WestLB AG, London Branch.

WestLB AG acted as a coordinator, documentation and facility agent.

TNK-BP Chief Financial Officer, Jonathan Muir commented: "The size and price of this transaction as well as the number of banks participating in the deal show the strong market interest to TNK-BP`s credit. This success confirms the confidence of the international lending community in the operating and financial strengths of our company. The loan will provide us with greater financial resources and flexibility to manage our future growth opportunities".
sections: Economics, World News