General syndication launches for Alfa Bank facility

General syndication was launched to the market on May 9 for a US$200mn dual-tranche trade-related term loan facility for Alfa Bank, the largest non-governmental commercial bank in Russia.

The borrower has mandated initial mandated lead arrangers Commerzbank, Fortis Bank (UK Branch), GarantiBank International, Landesbank (London Branch), SMBC and Wachovia to facilitate the transaction, which is structured as a bullet repayment and carries tenors of 364 days and 18 months and margins of 100 basis points and 130bp for tranches A and B respectively.

The facility is neither pre-funded nor underwritten and the amount will be increased in the event of an over-subscription.

Standard Chartered is the facility agent on the deal, with Mega International Commercial Bank (Offshore Banking Branch) joining the transaction at the senior lead arranger level.

Alfa Bank operates under international auditing standards and is rated BB by S&P and Ba1 by Moody's.