MOSCOW The board of Rosneft (ROSN.MM), now ranked as the world's largest listed oil company by output, has approved a plan to issue 300 billion roubles ($9.4 billion) in domestic bonds with 10-year maturity, it said in a regulatory filing on Friday.
Rosneft, which will sell new domestic bonds in several tranches worth 15 billion roubles, 20 billion and 30 billion, said that the issuance is "a usual program" to finance general business purposes.
Earlier this year the state-controlled firm acquired its domestic rival TNK-BP in a $55-billion deal, using loans, Eurobonds and other financing tools to support the purchase and continues to make other acquisitions.
According to a research note from Sberbank CIB, Rosneft had $10.5 billion of cash by the end of June, while it committed or made cash payments from June 30 until now include $2.7 billion in dividends and $8.6 billion in announced M&A deals.
"Final execution of all announced M&A deals will probably leave the company with little available cash, and it also has to fund redemption payments for its TNK-BP bridge loan," Sberbank CIB analyst Alexey Bulgakov said earlier this week.
"Rosneft has to either accelerate the execution of its huge export deal with China and agree to a large prepayment, or ask lenders for a roll-over of the bridge loan and print some bonds.
($1=31.9277 Russian roubles)
(Reporting by Katya Golubkova; Editing by Greg Mahlich)