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$200 million syndicated loan for Russia's IMB Bank
Deal part of EBRD plan to provide Russian banks with longer-maturity funds
The European Bank for Reconstruction and Development is co-arranging a $200
million syndicated loan for International Moscow Bank (IMB) in the first of a
string of deals the Bank is working on to provide Russian banks with long-term
funds so they can give Russian businesses much needed access to
longer-maturity credit.
The EBRD portion will consist of a three-year, $30-million loan earmarked for
IMB on-lending to Russian small and medium-sized enterprises, particularly in
less-developed regions. Co-arrangers for the remaining $170 million are HVB
and Nordea (IMB’s two largest shareholders), Commerzbank and Citibank. The
tenor of the commercial portion of the syndicated loan is one year, with an
option to extend for a further year.
Kurt Geiger, EBRD Business Group Director for Financial Institutions, said 30
commercial banks have agreed to participate in the syndicated loan, which is
oversubscribed, demonstrating strong market demand for quality Russian assets.
The $30 million loan is the first under a new $220 million EBRD framework
facility which will allow the Bank to double its exposure to the IMB group.
The EBRD has a 10 per cent stake in IMB, whose capital is owned by a mixture
of foreign and Russian banks.
The bulk of the new EBRD funding will take the form of senior loans or
subordinated debt to help IMB strengthen its retail franchise and thus reach
out beyond its traditional banking niche in which it serves major Russian
corporations. IMB’s future strategy will include targeting medium-sized
Russian corporate customers and small businesses, not only in Moscow but also
in Russia’s regions.
The framework facility will also allow the Bank to fund the group’s leasing
arm, IMB-Leasing, as part of a broader EBRD effort to stimulate what is often
the only way for medium-sized Russian companies to finance capital expenditure.
Another possible target is mortgage lending in a country where, mainly due to
the lack of long-term financing from banks, only 5 per cent of the real estate
in Russia is bought through a bank loan.
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