Italian natural gas company Snam SpA (SRG.MI) said Tuesday it has completed credit-line contracts for EUR9 billion ($10.9 billion) with a group of major international and domestic banks, allowing the company to meet its capital requirements, including the repaying of current debt to Eni SpA (E, ENI.MI).
The figure is below the EUR11 billion credit line originally agreed to with the banks, as Snam has already managed to raise EUR2 billion through bonds issues in recent weeks.
The 11 lenders are Banca IMI-Intesa Sanpaolo SpA (ISP.MI), Bank of America-Merrill Lynch (BAC), BNP Paribas S.A. (BNP.FR), Citigroup Inc. (C), HSBC Holdings PLC (HBC, 0005.HK), J.P. Morgan Chase (JPM), Mediobanca (MB.MI), Morgan Stanley (MS), Societe Generale S.A. (SCGLY), UBS AG (UBS) and UniCredit SpA (UCG.MI).
In a filing to the Italian stock exchange, the company said the agreements represent a step forward in attaining its financial independence from state-controlled Eni.
In June, the government ordered Eni to sell its roughly 52% stake in Snam as part of a plan to separate the two companies. Eni's board agreed to a preliminary binding sale of 30% less one share in Snam, for EUR3.52 billion, to lender Cassa Depositi e Prestiti SpA.
Meanwhile, Snam announced a plan to issue bonds for up to EUR8 billion until June 2013.
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