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Vneshtorgbank increased the syndicated loan to $382 million

 
2 December 2003

Vneshtorgbank increased to $382 million the syndicated loan which had been raised from a group of foreign banks in December 2002. Citibank NA and Deutsche Bank AG became arrangers of the loan.

Left to right: Allan Hirst of Citigroup and VTB`s Andrey Kostin and Olga Avdeeva at the signing ceremony

The loan raised by Vneshtorgbank is the largest syndicated loan granted to any Russian commercial bank in the history of the Russian banking system, while the interest rate applicable to the extended tranche has been established at the minimum level for Russian banks.
Initially, the loan was granted in two tranches, that is, $128 million for a 1 year term (with an extension option up to two years) and $112 million for a 1.5 year term (with an extension option up to two years). Under the agreement signed today, the first tranche has been extended by one year.
Despite the decreased interest rate from 2.5% to 1.5% p.a. above LIBOR on raised funds within the extended period, the increased demand from foreign investors to take part in the loan enabled Vneshtorgbank not only to extend the term of the loan, but also to increase itsount by over US$140 million. The increased syndicated loan where more than 50 banking institutions from 16 countries took part totalled US$382 million.
Vneshtorgbank will draw the loan to expand lending of the customers.
Successful implementation of the project has become another proof of the high trust foreign financial community placed in Vneshtorgbank.
A $175 million syndicated loan at the rate of LIBOR+1.5% p.a. for a one-year term raised last September from top foreign banks can be mentionedong other important projects implemented by Vneshtorgbank this year in the global market.


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