New York-based Commerzbank AG is to provide LUKoil with a USD 26.4 million medium-term loan guaranteed by US Eximbank. According to the Russian company's press office, the loan, which has a three to five-year repayment period, will be granted to supply drilling equipment to one of LUKoil's daughter companies.
It is expected that a memorandum between LUKoil and Commerzbank AG on the possible increase of the loan to USD 100 million will be signed in early October during LUKoil president Vagit Alekperov's visit to the United States. Alekperov is taking part in the US-Russian energy summit in Houston.
LUKoil PLC was registered in 1993. It has authorized capital stock of about USD 675,694, which is divided into 850,563,255 ordinary shares . The company's main functions are oil and gas extraction, and the manufacture and sale of petroleum products. LUKoil subsidiaries carry out 24% of the total volume of oil extraction in Russia and 18% of petroleum refining.
Eximbank is the US' official export credit body. The company provides loans and guarantees and insures export credits.