The US$1bn club loan for Russian petrochemicals company Sibur is hanging in the balance after several banks withdrew from the deal due to issues around US economic sanctions against Russia. At least four banks have walked away from the deal as Sibur has so far refused to include enhanced sanctions clauses in the loan documentation, according to bankers.
The last-minute signing of a US$1.8bn club loan for Russian mobile phone operator VimpelCom is expected to prompt further sales of Russian loans in Europe’s secondary market as banks try to make room for the unexpected exposure by selling other loans, bankers and traders said.
Petrochemicals company Sibur’s refusal to include enhanced sanctions language in a planned US$1bn loan is further delaying the deal, as bankers grapple with sanction issues around the company’s ownership.
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