OREANDA-NEWS. November 12, 2009. Russian bank MDM signed a USD  250 million syndicated loan. Raiffeisen Zentralbank Osterreich AG (RZB), together with four other Banks, acted as bookrunner and mandated lead arranger. The deal also involved the participation of the International Finance Corporation (IFC), which is an arm of the World Bank that provides financing to private companies.

The facility was launched with an initial targeted amount of USD  175 million, which was subsequently raised to USD  250 million due to oversubscription. The order book amounted to almost USD  300 million.

A total of 16 banks from 10 countries joined the facility. The interest rate for this one-year-facility is 4 per cent per annum over LIBOR/EURIBOR. MDM Bank will use the proceeds of this syndicated loan for trade-related financing and other trade-related projects undertaken by the bank’s customers.

In addition to RZB, the facility's bookrunners and mandated lead arrangers for the facility were Calyon, ING, Standard Chartered Bank and VTB Deutschland. Erste Group, State Bank of India and West LB were mandated lead arrangers. The underwriting banks also included AKA Ausfuhrkredit, Citibank, OCBC Bank and Wachovia Bank. The facility's co-arrangers were Atlantic Forfaitierungs AG, Banque de Commerce et de Placements, London Forfaiting Company and UBS.

RZB member of the board Patrick Butler is responsible for RZB's investment banking activities. He said: "This is the year's first major international loan facility for a Russian bank. RZB continues to be one of the leading bookrunners for syndicated loans in Central and Eastern Europe."