Russia’s Promsvyazbank has published its first half results of its factoring business. The volume of receivables assigned to Promsvyazbank amounts to R76.5bn, an increase of 86% over the same period in 2007.
The bank’s factoring portfolio increase by 24.6% in the first half of this year, reaching R22.8bn as of July 1, more than doubling compared to the same period in 2007.
In the first half, the bank signed more than 300 factoring contracts, including over 220 contracts signed by the bank’s regional branches outside Moscow.
According to the international factoring association Factors Chain International, of which the bank is the member since 2003, PSB has 75% market share in export factoring in Russia and about 80% market share in import factoring, according to the first half of 2008.
These results follow the issuing of mandates for a trade-related loan. Promsvyazbank has mandated Commerzbank, Emirates NBD, ICICI Bank, ING Bank and RZB to arrange a US$175mn trade-related syndicated term loan facility.
The loan carries a tenor of 12 months, and pays a margin of 120 basis points per year. The funds will be used to finance the trade-related contracts of the bank’s customers.
Reader Comments