Loan syndications: case studies

COSMOTE, Romania (July 2013)

A EUR 225 million unsecured loan was made to COSMOTE Romania Mobile Telecommunications S.A. - the country’s third-largest mobile operator and a subsidiary of the Hellenic Telecommunications Organization (OTE), the Greek incumbent and leading Southeast Europe telecom operator – to finance the renewal of mobile licences and fulfil the payment for the spectrum allowing fourth generation (4G) mobile services, and to satisfy a part of its capital expenditure requirements for its network.

The financing arranged by the EBRD enabled COSMOTE Romania to improve its competitive advantage.  The company is able to  deliver faster broadband communications with a better quality of service and will provide new and innovative applications and services.

The EBRD provided EUR 75 million with the remaining EUR 150 million being syndicated under the A/B loan structure to ING Bank, Société Générale, Erste Group Bank, Eurobank Private Bank Luxembourg, Citibank Europe, NBG Bank Malta and Raiffeisen Bank International.  The loan was the largest syndicated loan in Romania since 2011.

FORD OTOSAN, Turkey (July 2014)

EBRD provided a EUR 140 million loan to Ford Otosan, the second EBRD syndicated loan to Ford Otosan following the EUR 150 million A/B loan signed in 2010. The financing is intended to enable Ford Otosan to produce new, globally competitive heavy duty trucks, implemented through a 3-year investment program, which includes the development of new truck engines, modernization of manufacturing processes and the increase of truck production capacity and product variety.

With the completion of the project, Ford Otosan will increase its truck production capacity by 50% to 15,000 units p.a., to serve the domestic market as well as the surrounding export markets.

Ford Otosan is one of the largest manufacturers of motor vehicles and parts in Turkey, where it operates three plants as well as a parts distribution centre.  It has become the commercial vehicle production hub of Ford Europe in the region. With its majority of sales being exported, Ford Otosan is Turkey’s export leader in the automotive industry.

EBRD provided EUR 70 million with BTMU, Credit Agricole, HSBC and Société Générale providing the remaining EUR 70 million under the EBRD A/B loan structure.

DARIALI HYDRO POWER PLANT, Georgia (August 2014)

EBRD provided JSC Dariali Energy Georgia with a USD 80 million loan to finance the development, construction and operation of Dariali HPP, hydroelectric power plant to be located on the Tergi river in north-eastern Georgia. Dariali HPP will have installed capacity of 108 MW with expected electricity output of 510 GWh at P50 scenario (implied load of 54%).

JSC Dariali Energy is a special purpose vehicle established in Georgia for the sole purpose of constructing Dariali HPP.  JSC Dariali Energy is jointly owned by PERI Ltd (31%), The Robbins Company (23%), Georgian Energy Development Fund (23%) and Energy LLC (23%). 

The USD 80 million financing was split between A and B loan with EBRD providing USD 40 million; FMO USD 30 million and Green for Growth Fund (“GGF”) USD 10 million.

KOM MUNAI LLP (OMV Petrom), Kazakhstan (September 2014)

A USD 200 million syndicated loan was provided to Kom-Munai LLP to be used for capital expenditures to finance the development of OMV Petrom’s hydrocarbon fields in Kazakhstan. OMV Petrom holds the licenses for four oil and gas fields in Kazakhstan through its subsidiaries Kom Munai LLP (“KOM”) and Tasbulat Oil Corporation LLP (“TOC”). Petrom is the largest publicly-listed company in Romania and itself part of the OMV group - one of the biggest listed industrial companies in Austria and one of Central Europe’s leading oil and gas corporations.

The Loan proceeds are used for  capital expenditures and for the refinancing of Group loans previously used for capital expenditures.

EBRD provided USD 100 million with BRD-Group Société Générale S.A. and ING Bank N.V. providing the remaining financing under the A/B loan structure. The A loan has a tenor of

8 years and the B loan 6 years.

BELARUSKY NARODNY BANK, Belarus (November 2014)

A syndicated loan of USD 12 million was provided to privately owned Belarusky Narodny Bank (BNB-Bank). The proceeds will allow BNB-Bank, which concentrates its activity on lending to small and medium domestic businesses, to get access to the syndicated loan market and expand its SME financing activity across Belarus.

Bealrusky Narodny Bank was established in 1991 at the initiative of the Unions of Entrepreneurs and Architects of the Republic of Belarus and was further acquired by three private local companies in 2004.  In May 2008, Bank of Georgia acquired 70% of the bank’s shares, thus becoming the strategic shareholder and starting a new era in development of the bank.  In 2010, IFC became a shareholder of the bank with a stake of 20%

The loan consisted of an A loan of USD 5 million for the EBRD’s own account and a B loan of USD 7 million syndicated to European Fund for Southeast Europe and Impulse Microfinance Investment Fund (by Incofin IM).

EBRD’s ability to attract foreign lenders for its clients was crucial for the successful closing of the transaction, especially in the context of the challenging regional geopolitical situation.

ADANA HOSPITAL PPP, Turkey (December 2014)

A EUR 215 million EBRD loan facility has been provided to the Adana Hospital PPP project to finance the construction, financing and maintenance of an integrated health campus with 1,550 beds in the city of Adana under a 28 years concession. The Adana Hospital PPP project, the first hospital PPP to reach financial close in Turkey, represents an important milestone in the transformation of Turkey’s healthcare sector to improve healthcare services and facilitate greater access for the Turkish population in line with international standards.

The EBRD provided EUR 115 million of the loan with the remaining EUR 100 million being syndicated under an A/B loan structure to BBVA, HSBC and Siemens Bank, with a tenor of

18 years for the A loan and 15 years for the B loan.