OREANDA-NEWS. The European Bank for Reconstruction and Development, The Bank of Tokyo-Mitsubishi UFJ, Ltd., Calyon and Sumitomo Mitsui Banking Corporation Europe Limited have completed the syndication of a $300 million loan to MDM Bank.

The loan will be used to expand the Bank’s retail activities, extend longer-term funding and increase small business lending.  

The loan was originally offered in the syndication market as a $150 million facility, but the EBRD had expected it to be over-subscribed and had allowed for it to grow to $225 million. In the event, strong market demand resulted in the final figure being increased to $300 million.

The EBRD is lender of record for the full amount and is providing a five-year a loan using $100 million of its own funds.  The remaining $200 million is being syndicated to 29 commercial banks, which are advancing three-year loans under the EBRD’s A/B loan structure.  The B Loan was priced at LIBOR plus 0.9 percent per annum.