has launched syndication of a EUR 2bn loan, bankers close to the deal told Reuters on Thursday. The facility backs MOL's share buyback as the company seeks to deflect a bid by . The fully underwritten loan is structured as a three-year revolving credit facility, with an initial margin of 32.5 basis points over EURIBOR, according to Reuters. The margin is linked to a grid based on the company's leverage levels that ranges from 27.5 b.p. to 50 b.p. over EURIBOR. The loan is being arranged by four bookrunners such as , , and Royal Bank of Scotland.
The terms of the loan are pretty favorable for the company reflecting its very low gearing. After the syndication the money would be transferred to account in few weeks time, we believe, which can lend a new boost to the share buyback program. We expect positive market reaction to the news.