Abanka in Slovenia has mandated BayernLB, DZ Bank, Intesa Sanpaolo, and RZB as the initial mandated lead arrangers to arrange a €100mn three-year facility. Syndication has now been launched.
The deal is structured as a syndicated amortising term loan facility, and has an aveage life of 1.75 years.
Repayment is due in six equal semi-annual instalments, commencing six months after the deal is signed. The margin being paid is 47.5 basis points over Euribor per year.
Abanka was originally established in 1955 as part of Jugobank, the foreign trade bank of the former Yugoslavia. It has been operating in its current form since January 1990, and it is the third largest bank in Slovenia by total assets.
Abanka was awarded a BBB long-term credit rating from Fitch Ratings in early March. It has also been given a short-term assessment of F3.
In an official statement issued by the Abanka, Sabine Bauer, director of financial institutions at Fitch, comments: "In spite of the strong growth achieved in 2007, Abanka has managed to maintain an appropriate level of capitalisation, further boosted with the last issue of shares.
"Abanka could maintain the current credit rating by preserving the good level of capitalisation and achieving high profitability based on operations with clients, providing that the standards of risk assumption are not compromised."
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