OREANDA-NEWS. On April 12, 2007 the European Bank for Reconstruction and Development, Calyon, HSBC and Raiffeisen Zentralbank Oesterreich AG have completed the syndication of a US$ 300 million loan for JSCB Promsvyazbank (CJSC). The amounts committed have substantially (by 50%) exceeded the originally planned volume of the transaction. The funds raised will be used to increase the volume of active operations, as well as to provide loans to corporate and retail customers, reported the press-centre of JSCB Promsvyazbank.
Under this syndicated loan facility, the EBRD is the lender of record and will provide Promsvyazbank with a 5-year A loan in the amount of US$85 million out of its own funds. The other participants of the syndicate will lend US$215 million for 3 years under an EBRD A/B loan structure. The interest rate for the B loan stands at LIBOR + 1% per annum. This syndication involves 33 top global financial institutions from America, Europe and Asia.
According to Artyom Konstandian, Promsvyazbank’s senior vice-president, today this syndicated loan is the largest in the bank’s history. The success of syndication and the wide geographical spread of participating institutions underlines the high rating given by international investors to Promsvyazbank’s business and its development strategy.
Promsvyazbank is actively cooperating with the European Bank for Reconstruction and Development in a number of areas, including trade finance and a small- and medium-size business development program. In 2005, Promsvyazbank received a 6-year subordinated loan from EBRD in the amount of 1,5 billion Russian rubles.