OREANDA-NEWS. On July 31, 2008 Bank Vozrozhdenie has raised a US 50 million Subordinated Loan from two European development institutions; German DEG - DEUTSCHE INVESTITIONS - UND ENTWICKLUNGSGESELLSCHAFT MBH (“DEG”) and Dutch NEDERLANDSE FINANCIERINGS-MAATSCHAPPIJ VOOR ONTWIKKELINGSLANDEN N.V. (“FMO”), reported the press-centre of Bank Vozrozhdenie.

The loan, in the form of a “10 non-call 5” is for a period of 10 years but the Bank has an option to prepay after five years. The term facility agreement was signed on May 21, 2008. This loan will provide significant long-term financing for continued expansion of Vozrozhdenie’s lending to its diversified client base.

It also counts as Tier Two capital under Central Bank rules and Basle standards and therefore supports Vozrozhdenie’s capital base allowing further increase of our borrowing and lending ability. Prior to this loan, the Bank’s Tier 1 & 2 ratio was at 15.8%, well above the minimum standard of 10%.

“We consider this loan important, especially at this time of turbulent market conditions. FMO and DEG are known for making commitments to companies who make an effective contribution to development, meet environmental standards and comply with good governance and social principles. We are pleased to be recognized as creditworthy and conscientious by them.’’ said Neil Withers, Advisor to the Chairman of Bank Vozrozhdenie.

“We are proud to be the first international lender to support Vozrozhdenie Bank with subordinated capital. As one of the bank’s activities focuses is on financing of small and medium-sized enterprises, the project makes a contribution to securing jobs in this field. We support the development of such growth-intensive commercial banks for the sake of financial-sector diversification and improvement of access to financial services” said Dr Andreas Zeisler, Head of Financial Institutions division of DEG.

FMO and DEG are development finance institutions providing financing solutions for companies in developing and emerging market countries.