IFC lends support to Ursa Bank

The IFC has granted a dual-tranche loan for US$125mn to the Russian bank Ursa Bank. The first tranche is for US$50mn, and provided solely by the IFC. The remaining US$75mn was syndicated by IFC, Citi and ICICI.

The syndicated portion paid a margin of 120 basis points over Libor, and carried a tenor of two years, with a one-year grace period.

"This loan will assist us in servicing our trade finance and SME customers for up to 4 years, which will further accelerate economic expansion in the Russian regions”,” comments John McNaughton, managing director, Ursa Bank.

Steven Fisher, managing director, corporate bank head, Russia and the CIS, at Citi comments: “The deal's customised tenor structure with the specific support of IFC, coupled with the continuing strong growth story of Ursa Bank, was the required successful combination to execute this transaction under what everyone currently views are challenging market conditions for fundraising for banks in the CIS.”

The loan will be used to expand trade finance operations of the bank, lending to SMEs, and lending to companies to finance investments in goods and services aimed at boosting energy efficiency in buildings and industrial processes.