Twin Loans Totalling US$2.2B Illustrate Continued Investor Confidence In Russia

White & Case financing work for Gazprom hits US$7B mark

London, November 2, 2004 ... White & Case advised ABN AMRO Bank N.V. as leading initial mandated lead arranger and sole bookrunner in a US$1.1 billion syndicated loan to Gazprom, the world’s largest producer of gas. The six-year loan, secured against export receivables from a gas sale contract with the Czech Republic, is the first significant secured syndicated loan in Russia involving offshore accounts since new Russian currency control laws came into effect on June 18, 2004. It is also the largest loan from a single underwriter to a Russian business since 1998.

The deal, which takes advantage of favourable market conditions and will be used to consolidate Gazprom’s existing loan debt, means that this year alone White & Case has advised on US$2.2 billion of loans to the natural resources corporate. In May 2004, the Firm acted for Calyon in its role as initial mandated lead arranger and sole bookrunner in another US$1.1 billion syndicated loan to the gas production giant, secured against a single gas sales contract.

The purpose of this earlier loan was to refinance a US$3 billion "jumbo" secured loan to Gazprom made in 2002, which is still the largest ever loan made to a Russian private company. White & Case’s representation of the various arranging groups in Gazprom financings began in 1997, during which time the Firm has acted on secured financings totaling more than US$7 billion.

White & Case partner Jason Kerr explained: "Acting on the initial financings for Gazprom, Russia’s largest borrower, has meant that we’ve been at the heart of developing the sophisticated legal regime required to deal with the complexities of what was, at the time, a nascent Russian legal and regulatory system. The Gazprom security structure that was created has stood the test of time, enabling the syndication of Gazprom debt since 1997. Moreover, the continued substantial investor appetite for Gazprom debt illustrates that confidence in Russia’s premier league of businesses remains exceptionally strong."

The White & Case team advising ABN AMRO Bank N.V. was led by partner Jason Kerr in London, assisted by associate Tom Patrick, both of whom worked closely with partners Marc Polonsky and Igor Ostapets as well as associate Natalia Nikitina in the Firm’s Moscow office, and partner Ivo Barta and associate Jakub Dostal in Prague. 

About White & Case
White & Case is a leading global law firm with nearly 1,900 lawyers in 38 offices in 25 countries. Global Counsel consistently ranks White & Case among the top global law firms. White & Case has also been named Best US Law Firm in London, Eastern Europe Law Firm of the Year and Eastern Europe Corporate/M&A Firm of the Year by leading legal benchmark publications.

White & Case’s London Energy, Infrastructure Project and Asset Finance practice, currently consisting of 34 specialist lawyers, has established itself as one of the premier project finance teams in the market, with expertise in project finance in general, as well as in electricity, mining and metals, and an outstanding track record in the oil and gas sectors. The group has advised on a broad range of high profile instructions and is now acting on some of the largest project financing deals in the market, including the world’s two largest liquefied natural gas project financings: Sakhalin II in Russia and Qatargas II in Qatar. The practice has particularly strong Russian, Middle Eastern and African experience.

White & Case represents around 100 major financial institutions across the globe. The last year has seen key developments in its European Bank Finance practice with a number of high-profile hires.

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Media Relations
White & Case LLP
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