RIA Novosti reported that Gazprom Neft, the oil producing arm of Russian energy giant Gazprom, has closed a deal to raise a USD 1 billion syndicated loan.

Gazprom Neft said that “It has signed a loan syndication agreement with syndicate banks on July 4th 2007. The loan facility is intended to be used for general corporate purpose and the refinancing of existing debts.

It said "Despite the difficult market conditions, the loan facility was oversubscribed and closed within a short timeframe."

Gazprom Neft said the facility comes in two tranches with three and five year maturities, respectively. It said the loan was arranged by Banco Bilbao Vizcaya Argentaria S.A, the Bank of Tokyo-Mitsubishi UFJ, Ltd, Barclays Capital, Sumitomo Mitsui Banking Corporation and WestLB AG, London branch.

Mr Alexander Dyukov CEO of Gazprom Neft earlier said the company planned to raise loans worth a total of USD 2 billion in 2008. The company plans to raise another USD 1billion loan by the end of the year.