Akin Gump advises LUKOIL in $1.5 billion eurobond offering

“LUKOIL” announces the successful completion of its issuance of $1.5 billion Eurobonds listed on the Main Market of the London Stock Exchange. 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.

A team from Akin Gump's Moscow, London, Hong Kong, New York and Washington, D.C. offices advised LUKOIL on the offering, the company’s first debt issuance since 2016.

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.

The Akin Gump team was led by corporate partner Natalia Baratiants in Moscow, with corporate partner Dan Walsh and finance partner Robert Aulsebrook in London. It also included the following Akin Gump lawyers:

Corporate/Finance

International Trade

Investment Management

Tax