Lloyd's pulls out of $2B Rosneft-BP loan


Lloyds Bank (LYG) has withdrawn as a mandated lead arranger of a $1.5B-$2B (£895M-£1.19B) on a loan to finance BP's purchase of crude oil and refined products from Rosneft (RNFTF), highlighting the growing unease among Western banks in funding Russian deals.

The loan was to be similar to previous such deals Rosneft had with BP or trading houses Glencore and Vitol, but Lloyds decided to walk away after several weeks of hesitation.

The bank is 25% owned by the U.K. government, and Lloyds' may have wanted to avoiding embarrassing the government, considering the current political situation with Russia.

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Comments (3)
  • spike77
    , contributor
    Comments (488) | Send Message
     
    BP has many burdens to carry at present with the constant knock-backs by the US courts, the ever growing demands by Louisiana lawyers and business sharks, the still undecided final settlement over the Gulf spill, and the increased tensions between Russia and the West, it has become a stock I don't want in my portfolio (I sold about 2 weeks ago). I wish them luck with sorting themselves out, but until I see some sun over the horizon I'll just watch from the sidelnes.
    3 Jun 2014, 03:09 PM Reply Like
  • deercreekvols
    , contributor
    Comments (9749) | Send Message
     
    While I respect your decision to sell, the sun over the horizon, in my opinion, is that BP is the 5th largest company in the world and has operations in over 80 countries.

     

    I am long BP and will continue to add shares. Long-term, they aren't going away and will continue to produce for investors.

     

    Just my two cents.
    3 Jun 2014, 08:19 PM Reply Like
  • glf4mny
    , contributor
    Comments (464) | Send Message
     
    Oh, no, BP, drop your shorts, screwed again.
    4 Jun 2014, 01:48 AM Reply Like
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