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The first long maturity syndicated loan to a Ukrainian bank
Kreditprombank receives a $42 million facility from EBRD
The European Bank for Reconstruction and Development is providing a $42
million loan to Ukraine’s Kreditprombank. It will comprise an A Loan of $13
million for the EBRD’s own account and a B Loan of $29 million syndicated to
seven financial institutions including Cordiant Capital, Anglo-Romanian Bank
Limited, HSBC Bank plc, State Bank of India, Nassau (OBU), Mizrahi Tefahot
Bank Limited, London Branch, Banco Efisa, S.A. and National City Bank. The
loan will help Kreditprombank to expand its lending activity to small and
micro businesses in Ukraine.
The EBRD was able to increase the size of the A and B Loans (by $3 million and
$9 million respectively) in order to accommodate the high demand from the
market and to provide Kreditprombank with a bigger loan amount.
According to Anna Langdon, Senior Syndications Manager at the EBRD, the
success of this transaction will further enhance the ability of Kreditprombank
and other Ukrainian banks to tap international funding sources and extend loan
maturities in the future.
One important feature of this transaction is the maturity, which is
significantly longer than what is currently available for Ukrainian banks. The
EBRD portion of the loan has a tenor of 3 years, and the loan from the B
Lenders has a tenor of 18 months with a possibility to extend it for a further
18-month period.
Ukrainian borrowers typically have access to loans with a maximum maturity of
one year.
The European Bank for Reconstruction and Development is the biggest financial
investor in Ukraine. As of the end of September 2006 it had committed over
€2.4 billion through 120 projects.
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