MDM Bank in Russia has signed a US$500mn syndicated loan, which forms the B tranche of an A/B loan provided by the multilateral IFC.
The B portion carries a one-year tenor, with bullet repayment and will be used to support trade-related projects of the bank’s customers. It pays a margin of 90 basis points per year. This tranche was syndicated out to the commercial market.
The A portion is for US$35mn, and carries a tenor of four years, with a grace period of one year. It will be used to support MDM’s lending programme for energy efficiency projects. The A loan is provided by IFC for its own account.
The commercial B tranche was well-received in the market, and was oversubscribed although not increased. The initial mandated lead arrangers, alongside the IFC, are: Calyon, Commerzbank, DZ Bank, Emirates NDB, Erste Bank, ING Bank, Intesa Sanpaolo, Korea Development Bank, RZB, SMBC and Wachovia.
Joining in syndication as lead arranger is Alpha Bank, and Bank of Ireland joins as an arranger. Co-arrangers are Agricultural Bank of Greece, Banco Bradesco, First Gulf Bank and Pireaus Bank. WGZ Bank joins as senior lead arranger, and lead managers are: Agricultural Bank of China, Banco Itau, Bank Leumi, Bank Muscat, Banque BIA, Pohjola Bank, State Bank of India, Zuercher Kantonalbank, and Citi.
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