Tuesday, June 12, 2007
Top-tier investors flock to subscribe to LUKoil notes
MOSCOW, June 4 (RIA Novosti) - One of Russia's largest oil companies, LUKoil [RTS: LKOH], issued $1 billion's worth of notes in London Monday. The 50/50 issue of 10- and 15-year notes, lead-managed by Credit Suisse and Deutsche Bank, was nearly six times oversubscribed and went primarily to portfolio investors, banks, and pension funds in the U.S. and Western Europe. "LUKoil intends to use the proceeds from the issue, notably, to refinance the current debt and increase capital expenditure", the company said. LUKoil is a vertically integrated oil company based in Moscow, with upstream operations concentrated in western Siberia. It accounts for roughly 1.3% of world oil reserves, about 2.1% of world production, and 18% of production and refining in Russia. Outside Russia, LUKoil has three refineries in Europe and runs a network of nearly 800 gas stations in the U.S., bought last year from ConocoPhillips, which holds a 20-% stake in LUKoil.
Well, it looks like the Japanese model to me. Why would US of A have a negative view of a model we ourselves put in place to govern Japan? Sounds like pure logic, as far as I can tell.Post a Comment << Home