CREDIT BANK OF MOSCOW to Raise USD150 mn Syndicated Loan
OREANDA-NEWS. September 01, 2010. A USD 150mln A/B structured syndication was launched for CREDIT BANK OF MOSCOW. International Financial Corporation (IFC ) acts as a lender of record in the transaction and grants a USD 40mln A loan. The loan has a tenor of five years with a two-year grace period, at the end of which CBM will start to redeem the loan in equal parts, reported the press-centre of CREDIT BANK OF MOSCOW.
The B loan will be syndicated by commercial banks with a one-year tenor and a 325 b.p. (3,25%) margin over 6-month LIBOR. The declared facility amount of USD 110mln will be extended in case of oversubscription.
The bookrunners for the B loan are Commerzbank AG, ING, RZB and VTB Bank (Deutschland). The Mandated Lead Arrangers are First Bank of Nigeria (UK) and Amsterdam Trade Bank N.V.
The largest ticket of the B tranche is USD 10mln with a 175 b.p. (1,75%) participation fee or all-in pricing of 500 b.p. (5%). The banks are also offered commitments of USD 7.5mln with a 160 b.p. (1,6%) participation fee, USD 5mln at a 150 b.p. (1,5%) rate and USD 2.5mln at a 125 b.p. (1,25%) rate.
This is the tenth time CBM taps the international syndicated loan market. In autumn 2010 the Bank also plans to enter debt finance market and to raise USD 300mln by way of the Eurobond issue.
"The forthcoming deal reflects the increasing confidence of foreign investors in the Russian private banking sector and Russia as a whole, - noted Vladimir Chubar, First Deputy Chairman of the Management Board of CREDIT BANK OF MOSCOW. – This is the first international market entry of our Bank after the crisis, and we trust in its success".
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