The EBRD and IFC, a member of the World Bank group, have together raised a combined total of USD 250 million for Russia’s Credit Europe Bank (CEB), including USD 150 million from commercial banks, in one of the first tests since the 2008-2009 crisis of international appetite for the syndicated debt of private mid-sized Russian banks.
The over-subscribed syndication, which closed today, raised double the sum that had originally been intended.
The EBRD and IFC each committed to a three-year A loan of USD 50 million for their own account while 17 commercial banks, led by Raiffeisen Bank International, Standard Bank and VTB Deutschland, will provide a one-year B loan totalling USD 150 million.
The terms of the EBRD’s and IFC’s B loans are identical, raising USD 75million each. The pricing of the B loan is 2.5 per cent over 3-month LIBOR. The B loan’s one-year maturity can be extended for a further year at the lenders’ discretion.
The EBRD goal in supporting this successful transaction was both to broaden the loan’s investor base and demonstrate the post-crisis ability of Russia’s privately-owned mid-tier banks to access foreign borrowing after a long period during which international wholesale markets were virtually closed to all but top names.
It thus illustrates the key role played by the EBRD in mobilising international funding needed to support both the financial sector and the real economy.
List of B loan participating banks, commitments and roles
Raiffeissen Bank International AG -- USD 15 million (IMLA - Mandated Lead Arranger and Bookrunner)
Standard Bank plc -- USD 15 million (IMLA)
VTB Bank (Deutschland) AG -- USD 15 million (IMLA)
Isbank GmbH -- USD 15 million (Mandated Lead Arranger)
AKA Bank Ausfuhrkredit-GmbH -- USD 10 million (SLA – Senior Lead Arranger)
Citibank NA (London Branch) -- USD 10 million (SLA)
Demir-Halk Bank (Nederland) N.V -- USD 10 million (SLA)
PPF Banka a.s. -- USD 10 million (SLA)
VakifBank International AG -- USD 10 million (SLA)
Yapi Kredi Bank Nederland N.V. -- USD 10 million (SLA)
DENIZBANK AG -- USD 7.5 million (Lead Arranger)
First Commercial Bank Ltd.(London Branch) -- USD 5 million (Co-arranger)
Turkiye Sinai Kalkinma Bankasi A.S. (TSKB) -- USD 5 million (Co-arranger)
Banque de Commerce et de Placements S.A. – USD 5 million (Co-arranger)
Wells Fargo Bank, NA -- USD 3 million (Manager)
ALTERNATIFBANK A.S. -- USD 2.5 million (Manager)
Atlantic Forfaitierungs AG -- USD 2 million (Manager)
In August 2010, the EBRD agreed to lend CEB 2.9 billion roubles (equivalent to EUR 76 million) for on-lending to small and medium-sized businesses, especially in the regions.
CEB, part of the Turkish conglomerate Fiba Group, ranks 45th among Russian banks as measured by assets. It is present in 23 of Russia’s 83 regions and counts 2.5 million private retail customers, as well as 10,000 small business ones and over 900 corporates. CEB is owned by Credit Europe Bank N.V.