Belpromstroibank (BPS-Bank) in Belarus has mandated Banco Finantia, BayernLB, Credit Suisse, and Fortis Bank to arrange a US$40mn syndicated term loan facility.
The facility is being raised for trade finance purposes. It carries a 364-day tenor, and a further 364-day extension option. Repayment is due in full upon final maturity and it pays a margin of 320 basis points per year.
Syndication was launched on March 26, 2008. Banks are invited to join as lead arrangers for a commitment of US$7.5mn or more, for a flat fee of 120 basis points. Arrangers can join for US$5mn for a fee of 105bp, while co-arrangers can commit US$3mn for a fee of 95bp. Lead arrangers can commit US$2mn for 90bp, while managers can commit US$1mn for 85bp.
BPS-Bank is a commercial bank that provides services to companies and private individuals, as well as operating as a export-import bank working extensively in the trade finance market.
In August 2008, the bank secured a €
125mn financing facility, via a framework agreement signed with a syndicate of German banks lead arranged by Dresdner Bank. The syndicate also included AKA Ausfuhrkreditgesellschaft, BHF-Bank and Landesbank Berlin.
Under the terms of this agreement, funds can be borrowed by the bank, under a guarantee from the Belarusian government, to finance individual loan agreements to finance supply of industrial goods to Belarus.
The loans will only be granted for financing imports from countries where the export credit agencies are ready to provide insurance cover in favour of the German bank syndicate. The loans can finance up to 85% of the relevant contract value, as well as 100% of insurance cover costs, and the minimum amount of a contract is approximately US$2mn.
BPS-Bank is 90% state-owned, and has a rating of Ba1 long-term on local currency deposits, and Ba2 on foreign currency deposits, according to Moody's Investor Services.
Last Updated March 27, 2008
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