LUKOIL to Sell Debt

OAO LUKOIL, Russia's biggest oil company, is in talks with banks to sell debt, according to three bankers familiar with the transaction, Bloomberg reported.

The sale may consist of loans and bonds, according to one banker involved with the deal, who declined to be identified. Lukoil, which said March 5 that it will spend $3 billion upgrading its refining facilities, last sold dollar- denominated bonds to international investors in 2002.

Moody's rates Lukoil Baa2, two steps above sub-investment grade. S&P ranks it BB+, the highest junk rating.