RLPC-Rosneft in talks for $1 bln refinancing loan -source

LONDON, June 11 (Reuters) - Russia's largest oil company, state-controlled Rosneft (ROSN.MM) is in talks with banks to secure a $1 billion loan, which will help the company to refinance outstanding debt, a banking source said.

The five-year pre-export financing, which will be secured by the borrower's export contracts, is expected to be provided by a small group of Asian banks. There will be no further syndication.

The banker added oil and gas pre-export deals were popular among Asian lenders, and by that going East rather than West for funds, the company will be minimising borrowing costs.

Last year, Rosneft bought almost all the assets of bankrupt oil firm YUKOS at state-forced auctions and the company borrowed $22 billion in March 2007 to finance the acquisition.

Chief Financial Officer Peter O'Brien told Reuters on Monday that Rosneft, which by mid-September has to refinance around $6.5 billion in debt to Western banks, will choose the instruments in a month or two.

Rosneft's net debt fell by $2.7 billion to $23.58 billion as of March 31 from $26.28 billion as of Dec. 31, 2007.

Rosneft's previous loan, which also repaid part of the acquisition financing for YUKOS, was signed in May. That $3.425 billion, five-year pre-export deal paid a margin of 95 basis points (bps) over LIBOR. (Reporting by Christopher Mangham, editing by Will Waterman)