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EBRD raises $100 million syndicated loan to support St. Petersburg’s largest private bank
EBRD mobilises $75 million co-financing from 14 international banks
The European Bank for Reconstruction and Development has successfully raised a $100 million loan for Bank Saint Petersburg, attracting 14 international banks to the syndication of a $75 million B Loan tranche for the largest private bank in Russia’s second city, in a transaction demonstrating the EBRD’s continued strong commitment to the country’s banking system.
Konstantin Noskov, Director International Finance and Financial Institutions, Bank Saint Petersburg, said: “The huge interest of international banks in this loan syndication demonstrates the increasing trust in our bank in the financial community. We highly appreciate the EBRD’s support in accessing the loan market, especially under the present global economic conditions. The possibility of raising long term funding is a real value that EBRD brings to such transactions.”
Alain Pilloux, EBRD Business Group Director for Russia, added: “Many Russian banks made considerable efforts to strengthen their operations in the past few years, including through tapping international capital markets, and now that the market conditions have changed, the EBRD is ready to show its support for privately owned, well-managed clients.”
The EBRD’s involvement in the loan gives it the opportunity to support a bank with a successful track record and which is committed to high standards of corporate governance and good business, Mr. Pilloux added, stressing it would also provide the longer maturities any bank needs to help match assets with liabilities.
While acting as a lender of record for the full $100 million, EBRD is providing a four-year A Loan of $25 million and attracted the remaining $75 million from 14 international banks as a B Loan, which carries a maturity of 18 months and gives participating banks the option to extend it for a further 18 months on maturity. The B Loan margin is 2.75 percent over six-month LIBOR.
The transaction received a strong response from the market and achieved an oversubscription. The participating banks and their commitments are as follows:
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Mandated Lead Arranger
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US$
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BayernLB
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9,000,000
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BANIF Investment Bank
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9,000,000
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COMMERZBANK Aktiengesellschaft
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9,000,000
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FBN Bank (UK) Ltd
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9,000,000
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Raiffeisen Zentralbank Österreich Aktiengesellschaft
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9,000,000
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Arranger
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State Bank of India, Nassau (OBU)
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7,000,000
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WGZ BANK AG Westdeutsche Genossenschafts-Zentralbank
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6,000,000
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Lead Manager
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Bank Leumi Le Israel B.M.
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4,000,000
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GarantiBank International N.V.
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4,000,000
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Manager
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ADRIA BANK Aktiengesellschaft
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2,000,000
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Latvijas Hipoteku un zemes banka, State Joint Stock Company
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2,000,000
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Hua Nan Commercial Bank Ltd., London Branch
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2,000,000
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Land Bank of Taiwan, Offshore Banking Branch
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2,000,000
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Raiffeisenlandesbank Niederösterreich-Wien AG
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1,000,000
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The loan will help Bank Saint Petersburg to diversify and strengthen its funding base. The proceeds will be used to finance its corporate clients and individuals as well as lending to small businesses on a sustainable basis.
Bank Saint Petersburg is a universal bank providing a full range of services, predominantly to private sector companies and their employees in St. Petersburg where it has a 12.3% percent share of the loan market as at Apr 1, 2008. The bank was ranked 24th in Russia as measured by assets at the end of 2007. It has 31,000 corporate customers, including some of the best-known companies in St. Petersburg.
In 2006, the EBRD extended its first loan to Bank Saint Petersburg, advancing $30 million to help it increase support for small and medium-sized businesses. Previously, Bank St. Petersburg had joined the Trade Facilitation Programme set up by the EBRD to speed up the flow of imports and exports by guaranteeing letters of credit issued by local banks in its countries of operation.
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