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EBRD arranges $ 100 million syndicated loan to Kreditprombank
Longer resources provided to one of the fastest growing Ukrainian banks
The European Bank for Reconstruction and Development is making a $100 million
A/B loan to Kreditprombank of Ukraine to boost credits to private enterprises,
including SMEs, especially to finance Energy Efficiency projects.
The transaction will allow Kreditprombank and its clients to benefit from the
availability of long term funding from commercial sources. This is the longest
maturity loan available to a local bank, otherwise only available to the large
top-five banks or foreign owned banks in Ukraine.
The EBRD is financing $28 million under the A loan with maturity of four
years, while a $72 million B loan has been syndicated to commercial banks. Up
to $35 million of the proceeds will be used specifically to finance energy
efficiency investments undertaken by Kreditprom’s clients. Technical
Cooperation funding for energy efficiency project preparation, evaluation and
marketing, is provided by the Swedish and Austrian governments.
Jean-Marc Peterschmitt, Director for Bank Relationships at the EBRD, said:
“This is a new milestone in the long-standing relationship between the EBRD
and Kreditprombank. The commercial syndication represents a new maturity
benchmark for a Ukrainian local bank and the energy efficiency component of
the loan will help promote high priority investments in Ukrainian enterprises.”
Mandated Lead Arrangers of the syndication were ING Bank N.V., Raiffeisen
Zentralbank and Mizuho Corporate Bank. The B loan maturity is two years with a
possibility of extension for another two years.
According to Ludmila Rasputnaya, Chairman of the Board of Kreditprombank, this
syndication is very important for their bank in terms of pricing and
maturities in international markets. Without the EBRD participation such
syndication would hardly be possible, she added.
This syndicated loan is in line with the Bank’s strategy aimed at expansion of
its activities in the financial sector of Ukraine through different products
including equity and debt financing, securitisation and syndication,
micro-lending, leasing and consumer finance.
The European Bank for Reconstruction and Development is the biggest financial
investor in Ukraine. As of the end January 2007 it had committed over €2.87
billion through more than 130 projects.
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