OREANDA-NEWS. May 06, 2014. Alfa-Bank extended 20 mln EUR to the Development Bank of the Republic of Belarus under the syndicated loan for trade finance purposes.

Total amount of the deal is 130 mln EUR with the proceeds aimed to finance export-import operations of "DBRB". In particular, it is expected that one of the first contracts thereunder will be the purchase of two new aircrafts Embraer for "Airlines "Belavia".

For the Development Bank of the Republic of Belarus this is a debut deal in the market of syndicate lending. The facility floating interest rate is 4.25 percentage points against three months’ EURIBOR. The facility is structured in two tranches with the terms up to one year for the total amount of 20 mln and 110 mln EUR correspondingly.

Arrangers of the loan were financial institutions of Western Europe and Russia, including: AKA Ausfuhrkredit-Gesellschaft m.b. H., "Alfa-Bank", VTB Bank AG (Germany), "GLOBEXBANK", "MDM Bank", AKB "Novikombank", "Promsvyazbank" and "Rosselkhozbank".

Sergei Roumas, Chairman of the Board of the Development Bank of the Republic of Belarus, commenting on the importance of the deal said: "Alfa-Bank’s active participation in the debut syndication for the Development Bank of the Republic of Belarus is a manifestation of the mutual interest in long-term cooperation and evidence of trust in our bank on the part of the largest in Russia private bank. The proceeds will be used to finance foreign trade, modernize largest Belorussian enterprises and implement infrastructure projects".

Simon Vine, Co-Head of Corporate and Investment Business at Alfa-Bank: "Syndicated financing of the Bank of Development of the Republic of Belarus is the largest deal in terms of raised funds in the sovereign history of the Belarusian banking system, acknowledging the status of the Bank as one of the most reliable Belorussian borrowers — financial institutions. This is the second in a row syndicated loan for a Belorussian bank in 2014 with the participation of Alfa-Bank reflecting Alfa-Bank’s interest in making investments in the Belorussian economy".