Akin Gump and Clifford Chance Advise on Lukoil's USD 1.5 Billion Eurobond Offering

Akin Gump and Clifford Chance Advise on Lukoils USD 1.5 Billion Eurobond Offering

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Akin Gump has advised PJSC Lukoil on its issuance of USD 1.5 billion Eurobonds listed on the Main Market of the London Stock Exchange. Clifford Chance advised joint lead managers Citigroup, Societe Generale CIB, and Bank GPB International S.A. (Gazprombank).

The offering consisted of 10-year 144A/Reg S notes with a coupon of 3.875% per annum. The notes were issued by Lukoil Securities B.V. and guaranteed by PJSC Lukoil with the transaction completing on May 6, 2020. The debt issuance was the company’s first since 2016.

According to Akin Gump, "the transaction was conducted against a backdrop of the COVID-19 pandemic, massive falls in oil demand and prices, as well as the current geopolitical environment. All parties worked remotely for seven weeks, closing the transaction smoothly notwithstanding the logistical challenges. Lukoil intends to use the net proceeds for general corporate purposes, including the refinancing of certain existing indebtedness."

Akin Gump's team was led by Moscow-based Partner Natalia Baratiants, with London-based Partners Dan Walsh and Robert Aulsebrook. It also included Partners Alexey Kondratchik, Wynn Segall, Nnedi Ifudu Nweke, Arina Lekhel, and Bruce Simonetti, Senior Counsels Inderveer Hothi and Louis Zivot, Counsels Olga Te and Andrey Kulikov, and Associates Alex Leitch, Camila Rodriguez, Anna Kardash and Andrew Schlossberg.

Clifford Chance's team included London-based Partners John Connolly and David Dunnigan, Moscow-based Partner Arthur Iliev, and Moscow-based Counsel Evgeny Soloviev.