Naftogaz €478 million financing

Overview:

• Ukraine's state-owned oil and gas monopoly, Naftogaz, secured around €478 million in financing to purchase gas.    
• The loan was a letter of credit and direct disbursement financing with a term of two years. 
• The facility was guaranteed by the International Bank for Reconstruction and Development (IBRD), and represents part of multi-billion euro package of financial support from the EU negotiated in 2014 after Russia annexed Chrimea.
• In 2015, the European Bank for Reconstruction and Development (EBRD) lent Naftogaz $300 million to purchase gas.
• Citigroup and Deutsche Bank were mandated lead arrangers on the €478 million financing. 

Ben Naylor - Regional editor