UPDATE: Intesa may not syndicate loan for purchase of 19.5% in Rosneft

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CATANIA, Italy, Apr 7 (PRIME) -- Italy’s Intesa Sanpaolo may abandon plans to syndicate a 5.2 billion euro loan provided to commodity trader Glencore and the Qatar Investment Authority (QIA) for the purchase of 19.5% in Russian oil major Rosneft, Antonio Fallico, chairman of the board of directors of Intesa Sanpaolo’s Russian unit Banca Intesa, told PRIME on Friday.

“No other banks have participated, Intesa did no syndication,” he said.

When asked whether Intesa will do the syndication, he said, “Maybe not. This is a matter of economic sense.”

He declined to comment on the possibility of Russian banks taking part in privatization of Rosneft.

He also said that the banking group would like to participate in other privatization deals in Russia, but has not yet received any rulings or mandates. “Of course, negotiations are being held,” he said.

“We have not ever mentioned any limits, we will look at a certain deal if we are offered. We will be ready to finance it if we are interested in it regardless of the sum,” he said.

In February, Reuters reported with quoting Fallico that Intesa was discussing syndication of the deal with 14 international banks, and the group wanted to choose two or three banks that will take the burden of 2.5–3 billion euros. But later Fallico said Intesa rejected the syndication plans so far.

On January 17, Vedomosti business daily reported citing documents of QHG Shares Pte Ltd – a consortium of Glencore and the QIA – that Intesa provided a 5.2 billion euro loan, the QIA provided 2.5 billion euros, and Glencore 300 million euros for a 10.2 billion euro purchase of the stake, while 2.2 billion euros plus interest on the debt to Rosneftegaz will be raised through loans from Glencore and QIA.

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