OREANDA-NEWS. August 12, 2009. VEB could raise a euro-denominated loan from Western banks and sent a revised request. Vnesheconombank considers raising a euro-denominated loan from Western banks for a total of nearly USD 1 bn, a source close to VEB said, reported the press-centre of FINAM.

In early July, VEB sent to the banks which earlier participated in syndicated loans a request for proposals (RFP) worth USD 1 bn. VEB received feedback from banks and found out that the terms could be better, therefore, the lender sent out a revised RFP, a source at VEB said Tuesday. “Initially, the data made VEB consider a change in the loan currency.

The bank is now deciding whether to raise a loan facility in dollars or in euros”, the source said, noting that the bank “tentatively intends to borrow up to USD 1 bn”. “It is the loan currency, rather than the amount, that matters more to us”, the source said. A source in banking circles reminded Interfax-AFI that the last loan which VEB raised in October 2008 was in euro-denominated. “Therefore, VEB is familiar with this currency.

There are a lot of banks prepared to float a euro loan rather one in dollars, since this is cheaper for them. Therefore, if VEB again decides to raise a loan-denominated euro, the banks will do this in order to boost the loan amount”, the source said.