Syndication of Bank Caspian’s term loan has been closed by ING Wholesale Banking, Standard Bank Plc and UniCredit Group (Bank Austria Creditanstalt AG/Bayerische Hypo- und Vereinsbank), as mandated lead arrangers.
The facility closed with a significant oversubscription from the launch amount of US$150mn. The borrower has decided to increase the facility to US$200mn, resulting in the largest ever loan for Bank Caspian.
There are two tranches: Tranche A – 370 days and Tranche B – 24 months.
Tranche A has a 370-day extension option, whereas Tranche B has 24 months.
The loan is for the pre-export and import finance of Bank Caspian’s customers.
The margin is: TrancheA – 90bp per year and Tranche B – 120bp.
Bank Caspian was established in 1991. As at December 31, 2006, the bank was the ninth largest bank in Kazakhstan in terms of assets and sixth largest bank in Kazakhstan in terms of net income, which equalled US$1.573bn and US$54mn respectively.
The bank offers a wide range of traditional banking services, including deposit taking, lending, issuing letters of credit and guarantees, promissory bills, issuing payment cards, foreign currency exchange, correspondent banking and cash operations.
The bank’s primary business consists of retail banking. Its retail banking activities and products include deposit taking, express consumer loans, consumer loans (including mortgages) and SME loans. Its SME banking activities include a broad range of banking products offered to a diversified group of domestic customers, primarily small and medium-sized companies.
Bank Caspian has the third largest branch and sales offices network in Kazakhstan. As at December 31, 2006, the bank, in addition to its head office in Almaty, had 40 branch offices in all regions of Kazakhstan, 102 mini offices and a wide express consumer loan network consisting of over 500 points of sale serving over 2,000 retail stores – participants of the bank’s ‘Express “consumer lending program in all regions of Kazakhstan.