Banks sign second Erdenet pre-payment

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20 January 2010

Rabobank and Banco Espirito Santo (BES) and the UK’s Ocean Partners have closed a second limited recourse pre-payment facility to fund Mongolian copper miner Erdenet.

Rabobank and Banco Espirito Santo (BES) have closed a new $40 million limited recourse pre-payment facility to Ocean Partners UK to fund Mongolian copper miner Erdenet Mining Corporation (Erdenet).

Ocean Partners is the borrower of record. The deal, which closed...

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Gazpromneft stunned the market this week when it was revealed pricing for their five-year $1 billion pre-export financing was rumoured to be just above 300 basis points over Libor. Is the deal likely to be a syndication success?

Yes - this seems like a sensible pricing benchmark, why not?

No - are you crazy? These prices are ridiculous. What were these banks thinking?

27%

Yes - but for all the wrong reasons. A lack of other deals in the market, and the promise of future business with Gazpromneft will make it hard to ignore but don’t expect many to take up big tickets with this deal. There are much better deals out there.

64%