OMV refinances €1.5 bn syndicated loan

“This marks the latest step in a process of enhancing the funding profile of the Group initiated in September 2008 with the first time publication of credit ratings assigned by Moody’s (A3) and Fitch (A-)”, OMV said in a press release.

This facility replaces the existing facility expiring 2011 and will be used for general corporate purposes.

The transaction was arranged by Bank of America/Merrill Lynch, Barclays Capital, BNP Paribas, Credit Agricole, Deutsche Bank, Erste Group, J.P. Morgan, Raiffeisen Zentralbank, Société Générale and Unicredit Bank Austria as mandated lead arrangers and bookrunners.

The bank syndicate comprises a total of 16 domestic and international lenders. The margin is set at 75 basis points over EURIBOR.

“The signing of this facility extends a refinancing programme during which OMV Group has established itself as a borrower in the Eurobond market significantly broadening its investor base. We have substantially reduced the Group’s reliance on bank debt and now have a balanced portfolio of bank debt and funds sourced from the capital markets,” said David Davies, CEO of OMV.

By the end of 2009 the average maturity of the Group’s debt could be extended to 3.7 years and unused committed credit facilities amounting to €2,850 million were available to OMV Group.

OMV, the largest energy company in Central and South-Eastern Europe, holds 51.01% stake in oil and gas company Petrom.

OMV operates in 12 countries in the field of refining and marketing and in 17 countries across four continents in exploration and production. At the end of 2009, OMV had 2,433 filling stations in 13 countries.