Tatneft and Taneco announce ECA financing

Tatneft and TANECO announce ECA financing

16 December 2011

OAO Tatneft ("Tatneft") and OAO TANECO ("TANECO"), a Tatneft subsidiary responsible for the construction and operation of a new refining complex in Nizhnekamsk, Tatarstan, (the "Project") announce ECA-backed financings.

TANECO obtained a USD75 mln unsecured loan from a group of banks backed by EKF, the Danish export credit agency (the "EKF Loan"). The EKF Loan is covered by the insurance line approved by EKF and is intended to reimburse TANECO's past purchases of equipment, goods and services of Danish origin acquired in connection with construction of the Project. The term of the EKF Loan is 10 years and it bears an interest of 6 Months LIBOR plus 1.10 per cent per annum.

TANECO also signed an unsecured facility agreement for up to USD144.48 mln backed by SACE, the Italian credit export agency (the "SACE Loan"). The purpose of the SACE Loan is to reimburse TANECO for past and future purchases of Italian equipment, goods, services and licenses that are employed in connection with the Project. The term of the SACE loan is 12 years (including 2 years drawing period) and it bears an interest of 6 Months LIBOR plus 1.25 per cent.

Tatneft is a guarantor under both facilities.

The signed ECA-backed financings followed very stringent environmental due diligence of the Project by the ECAs that included site visit earlier this year.

The EKF Loan was arranged by Nordea Bank AB (Publ), Société Générale and Sumitomo Mitsui Banking Corporation Europe Limited. Soceiété Générale acted the Documentation Agent, Nordea Bank AB (Publ) acted as the EKF Agent and Facility Agent.

The SACE Loan was arranged by Bank of Tokyo-Mitsbushi UFJ Ltd, Société Générale, and Sumitomo Mitsui Banking Corporation Europe Limited with Société Générale acting as the Documentation, ECA and Facility Agent.

RBS and Bank ZENIT acted as financial advisers to Tatneft and TANECO.

Allen & Overy LLP acted as legal advisor to Tatneft and TANECO, and Clifford Chance LLP advised the lenders and SACE.

Forward-looking statements: These materials contain statements about future events and expectations that are forward-looking in nature. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements expressed or implied by such forward-looking statements to differ. OAO Tatneft assumes no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.