|
EBRD strengthens Estonian financial sector through major syndicated loan
By completing its first major syndicated loan to a financial institution in Estonia, the European Bank for Reconstruction and Development (EBRD) is supporting the development of the banking sector in the wake of the Russian crisis. The DM 150 million (ECU 85.2 million) senior bank-to-bank loan to AS Hansapank, the largest bank in the Baltic states, comprises a five-year DM 50 million (ECU 28.4 million) loan for the EBRD’s own account and a three-year DM 100 million (ECU 56.8 million) loan for the account of participant banks. The loan is designed to help strengthen the financial sector in Estonia and to channel funds to local small and medium-sized enterprises.
"Sound financial institutions and markets play a key role in all market economies, providing savers with a safe means of investing their funds and allowing entrepreneurs to obtain external finance for investment projects", said David Hexter, Deputy Vice President at the EBRD. "As the largest bank in the Baltics, Hansapank’s financial soundness and its ability to retain the confidence of the people are important to the health of the Estonian banking and enterprise sectors. This project will therefore strengthen a key player and support it in meeting the financing requirements of the private sector."
"This was a very successful syndication, which was oversubscribed despite the current difficult market circumstances", said Noreen Doyle, EBRD Deputy Vice President, Finance. "We were pleased to work with Bankgesellschaft Berlin and Hamburgische Landesbank to assist Hansapank in accessing medium-term funds from the international capital markets. The oversubscription and the range of banks in the syndicate demonstrate that the market can be accessed by sound borrowers and for well-structured transactions, even in emerging markets."
"In the current market environment, the successful syndication of the DM 150 million loan has confirmed that international investors have confidence in Hansapank’s financial strength and competitive position in the Baltic states", said Rain Lohmus, Hansapank Markets’ Managing Director and member of the Hansapank Board of Directors. "Additionally, the transaction has further enhanced our long-standing relationship with the EBRD and the underwriting banks."
Jointly arranged and underwritten by Bankgesellschaft Berlin (bookrunner) and Hamburgische Landesbank Girozentrale, the DM 100 million loan was co-arranged by Bayerische Landesbank Girozentrale, the Chase Manhattan Bank and Dai-Ichi Kangyo Bank Limited. Other banks participating in the loan include: KBC Bank NV, Dublin branch; Banca Commerciale Italiana SpA, London branch; HypoVereinsbank AG; DG Bank Deutsche Genossenschaftsbank A.G., LRP Landesbank Rheinland-Pfalz; and BG Bank.
Hansabank was founded in 1991. Today most of its shares are owned by foreign investors, of which the Swedish FöreningsSparbanken AB is the largest. As a universal bank, Hansapank offers its clients a full range of corporate, retail and investment banking services.
|
