Russia’s B.I.NBank has closed a US$27mn syndicated trade-related facility via mandated lead arrangers and bookrunners Landesbank Berlin and VTB Bank.

The deal was launched at US$20mn, and was oversubscribed in general syndication by 30%. The facility will be used for the borrower’s trade finance activities and reflects the growing level of trade finance business being conducted by the bank. During the first half of 2008 the bank handled 34 transactions related to import financing to the amount exceeding US$160mn, over double the volume of business conducted in 2007. Most of this financing was in the form of letters of credit, including stand-by letters of credit, and guarantees.

The new trade-related facility has a tenor of 364 days and pays a margin of 2.5% over Libor per year.

Lead managers on the deal are Ausfuhrkredit-Gesellschaft, Commerzbank, VTB Bank (Deutschland). Co-managers are Banque de Commerce de Placements, BRE Bank and Probanka.

The bank is a commercial private sector bank organised as an open joint stock company. It is a full service bank focussing on lending to large and medium-sized corporations and trade finance.
This is the second international syndicated loan arranged for B.I.NBank. The last deal was launched in 2006 at US$20mn. During syndication it managed to raise US$40mn. It was arranged by MLAs and bookrunners Landesbank Berlin, RZB and VTB Bank, and was used to finance export-related transactions of the borrower’s customers.

In March 2007, the bank opted to extend this facility by a further year, and it was increased to US$52mn. In April 2008 the bank repaid this loan.

During the first half of 2008 the bank expanded the geographical range of its transactions, with the share of deliveries from China and Japan increasing. The correspondent network of the bank has also expanded, with the bank opening a Swiss Franc correspondent account with UBS in Switzerland, and obtaining an agreement for effecting settlements in euros under Visa plastic card transactions.

Standard Chartered Bank has set up lines to B.I.NBank for trade finance and Forex operations as well as signing a netting agreement on FX transactions. The bank has also reached an agreement with Commerzbank to establish FX transactions line and to extend, both in size and term, the existing trade finance line.