23 Aug 2010 15:17

Credit Bank of Moscow to pay LIBOR+3.25% for syndicated loan

MOSCOW. Aug 23 (Interfax) - Credit Bank of Moscow will pay an interest rate of six-month LIBOR+3.25% on a $110-million loan it is raising from foreign banks, the bank said in a press release.

The loan is being organized by International Finance Corporation (IFC).

Last week the bank launched a deal to borrow $150 million in two tranches.

Tranche "A" totaling $40 million will be provided by IFC with a two-year discount period, after which Credit Bank of Moscow will begin making level payments on loan principal.

Tranche "B" will be provided by a syndicate of commercial banks for one year. The loan will be for $110 million, although the total might be increased if the loan is oversubscribed. The lead organizers for Tranche "B" are First Bank of Nigeria (UK) and AmsterdamTrade Bank N.V. The book runners are Commerzbank, ING, RZB and VTB Bank (Deutschland).

Credit Bank of Moscow also plans to tap debt markets this year, raising about $300 million in a Eurobond placement this fall.

"The upcoming deal reflects the growing trust foreign investors on the international market have in Russia's bank sector and the country overall," Vladimir Chubar, first deputy chairman of the management board, is quoted in the statement as saying. "Ours is the first foray of a Russian bank onto the international market since the crisis and we hope that it will be a success," Chubar said.

Credit Bank of Moscow is wholly owned by Rossium Concern LLC, whose ultimate beneficiary is Roman Avdeev.

Credit Bank of Moscow was the 35th biggest Russian bank by assets according to the Interfax-100 list as of the end of the first half of 2010.