Loan approval regilations for Gazprom's subsidiaries endorsed
Alexey Miller, Gazprom’s Management Committee Chairman endorsed the Regulations for the approval of the Gazprom’s subsidiaries and associated undertakings’ secured loan plans. The Document was developed in accordance with the Directive on the ratification of Gazprom’s subsidiaries’ money raising projections.
Pursuant to the Regulations, all the Gazprom’s subsidiaries and associated undertakings, the financial highlights of which form part of the Gazprom Group’s consolidated financial data filed under the international standards, must seek approval for their loan invitation intentions.
The Regulations identify the procedure and timing for the endorsement of the Gazprom Group’s borrowings, including the ratification of ways, amount, timing and conditions for the attraction of short- and long-term loans, emission of securities and financial derivatives, granting of warranties, etc.
“The Regulations are part of the hard and consistent work aiming to enhance the efficiency of implementing a common loan policy within the Gazprom Group of companies on the Russian and international capital markets. The work is expected to result in the establishment of the most favorable environment for corporate borrowings, optimization of the Gazprom’s consolidated debt structure and improvement of the corporate credit ranking”, – said Andrey Kruglov, Deputy Chairman of Gazprom’s Management Committee and Head of the Company’s Finance and Economics Department.
The Directive on the ratification of Gazprom’s subsidiaries’ money raising projections was passed in July 2004. In pursuance of the Directive, Gazprom imposes limitations for the loans of its subsidiaries when addressing their draft budgets. Such resolutions are adopted on the platform of the general corporate principles of long-term borrowings. The Directive emphasizes the obligatory requirement for the Company’s subsidiaries to agree with the top management on the very intention to take loans along with the ways, amount, timing and conditions to do it. The aforementioned Regulations were developed in accordance with the Directive guidelines.
Information Directorate, OAO Gazprom