OREANDA-NEWS. On November 30, 2007 BayernLB, VTB Bank Europe plc („VTB Europe“) and JSC VTB Bank (“VTB”) (together the “Initial Mandated Lead Arrangers” and “Bookrunners”) and Gazprombank (Open Joint-Stock Company) (“Mandated Lead Arranger”) announced, that the USD 35,000,000 Term Loan Facility arranged for Belorussian-Russian Belgazprombank Joint Stock (the ”Borrower”) has been signed, reported the press-centre of Belgazprombank.

Despite the liquidity challenges in the international financial markets the Facility was well received by the lenders achieving an oversubscription in the syndication of 40%, margin fixed at the level 287,5 bps.

The transaction was launched with an amount of USD 25,000,000. After successful syndication the Borrower decided to increase the facility amount to USD 35,000,000.

The proceeds of the Facility will be made available for financing trade-related transactions of the Borrower’s major customers.

Terms and conditions of the Facility are as follows:
Borrower: Belgazprombank
Facility Amount: USD 35,000,000
Type of Facility: Term Loan Facility
Maturity: 364 days from the signing of the facility with an extension option
Repayment: Bullet
Margin: 287.5 bps per annum.

The syndicate consists of the lenders from Russia, Great Britain, Germany, the Netherlands, Austria and Switzerland:

Introduction of the Borrower

Belgazprombank (or the “Bank”) was established in November 1990. The Bank is ranked the 7th among the country’s banks in terms of assets and 8th – in terms of shareholders' equity.
Since March 2005 Belgazprombank has been maintaining its international ratings through Fitch Ratings Agency .

In October 2007 the ratings were upgraded as follows: long-term Issuer default rating (IDR) from "B-" to “B” and Support rating from “5” to “4”, Short-term rating IDR and Individual rating were affirmed at "B" and "E" correspondingly. The ratings reflect the Bank’s sound assets quality, , improved earnings performance and strong propensity from the main shareholders (Gazprom Group) to provide support, should it be required. All ratings carry "Stable" Outlook.

In October 2007 in accordance with the decision of the General Meeting of Shareholders Belgazprombank's equity was increased from USD 29,4 million to USD 43 million. The share of Gazprom Group in the shareholder capital of Belgazprombank increased from 67,8% to 85,46% with Gazprom and Gazprombank each having a 42,73% stake in the capital of the Bank; Beltransgaz holds a 10,62% stake, the remaining 3,9% belong to the Republic of Belarus.