Commercial Bank Center-Invest in Russia has closed a US$145mn term loan facility, which was oversubscribed by 81%. It is the third internationally syndicated loan for Center-Invest.
Initial mandated lead arrangers on the deal are Commerzbank and Standard Bank, with Standard Bank acting as documentation and facility agent. A total of 37 banks from 12 different countries have participated in the transaction.
The initial request was for US$80mn, but due to high demand from participating banks, the facility was increased to US$145mn. The financing was signed during a commemorative event in London on February 29, 2008.
Raised to support trade contracts of the bank's clients, the facility has a maturity of 364 days from date of signing and pays 190 basis points over Libor. It was closed in accordance with English law.
"Bank Center-invest has always been a popular name with investors,” comments Kristina Tchoufarova, senior vice president, debt capital markets at Standard Bank.
She adds: “Since its first international syndicated loan in 2006 Bank Center-Invest has developed strong relationship with partner banks across the globe. This is normally a good foundation for any extension.
“However, an 81% oversubscription from the initial amount of US$80m has certainly exceeded all our expectations and has truly demonstrated an outstanding work by the borrower and arrangers. Through their joint efforts the extension has not only kept the majority of the existing lenders in but also attracted a large number of new lenders.”
Joining during syndication as mandated lead arrangers are FBN Bank, Anglo Romanian Bank, Banca Intesa, Unicredit Group (via Bank Austria Creditanstalt and Unicredit Bank). Lead arrangers are Commercial Bank of India, DHB Bank, ABN Amro, Erste Bank, Garanti Bank International, Indover Bank, National Bank of Egypt, and RZB. HSH Nordbank, National City, Rabobank, and VTB Bank joined as an arranger.
Co-arrangers are Citi, Hypo Alpe-Adria-Bank, LBBW, LHB Bank, Vakifbank International, Wachovia Bank and WGZ Bank. Senior lead managers are Adria Bank and AKA Ausfuhrkredit.
Center-invest has also extended a syndicated dual-tranche loan originally raised by the European Bank for Reconstruction and Development (EBRD) in July 2006 by 18 months.
The total amount of the extension is US$45mn. Under the terms of the original loan, tranche A is for three years, and tranche B is for 18 months, plus a further 18 months subject to the consent of the lenders. The EBRD has a 27.5% stake in the bank. Other shareholders include DEG, Firebird Investment Fund, Raiffeisnlandesbank Oberosterreich and Renaissance Capital.
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