Under the structure of the deal, Qatar will invest €2.5bn and Glencore €300m for equal stakes in the a special purpose vehicle that is buying a 19.5 per cent stake in Rosneft from its government-owned parent company Rosneftegaz.
Italy's Intesa Sanpaolo will provide the ”bulk" of the debt financing for the remainder of the €10.2bn deal, according to Rosneft, but Russian banks will also be ”providing financing and credit support", Glencore said.
Glencore said that in addition to the €300m it would invest in the vehicle, it would provide a further €1.4bn in ”margin guarantees" that would offer protection to the consortium of lenders against a large fall in the value of the Rosneft shares.
However, this €1.4bn would be fully indemnified by ”appropriate Russian banks", Glencore said. The deal is structured ”like an LBO [leveraged buyout]," a Rosneft source said. ”Glencore will hedge the main part of its stake."
Rosneft said that the sale of the shares for €10.2bn — a 5 per cent discount to their market price on the day before the deal was announced — would result in a 692bn rouble transfer to the Russian budget, and that Rosneftegaz, its parent company, would pay a special dividend of 18bn roubles, for a total payment to the government of 710.8bn roubles ($11.1bn), to be completed by mid-December.
The government in November had ordered the Rosneft shares to be sold for not less than 710.8bn roubles.
Rosneft may use some of the proceeds of a recent 600bn rouble bond sale to make the payment to the budget, the source at the company said, keeping the foreign currency for use in its international activities in order to minimise the impact on the Russian currency market.
