TNK-BP to use $1 billion loan to finance 2010 business plan

The Russian-British joint venture TNK-BP plans to use half of a $2 billion syndicated loan to finance its 2010 business plan, the company said on Thursday.

TNK-BP and 16 international banks signed an agreement on Oct. 14 to grant the Russian-British joint venture an unsecured $2 billion credit line in two tranches worth $1 billion each.

The new credit line is TNK-BP's largest debt financing deal since the company was founded. The line was given for three years with an interest rate of LIBOR+1.75 percent. The loan proceeds will be directed for general corporate purposes, the company said in a statement.

The first tranche will be used to finance activities stipulated in the 2010 business plan. The second tranche is the banks' commitment to provide funds and can be used fully or partially within six months depending on the company's requirements for financing, it said.

MOSCOW, October 21 (RIA Novosti)