Moscow Narodny Bank has signed a US$140mn three-year bullet loan arranged by mandated lead arrangers Bank of China, Bankgesellschaft Berlin, Bayerische Hypo- und Vereinsbank, HSH Nordbank and Natexis Banque Populaires.
The facility was increased from its original amount of US$100mn to US$140mn due to higher level of investor demand.
The proceeds of the term loan, which will pay a margin of 100bp over Libor, will be used for general funding and structured trade finance-related purposes.
The heavy oversubscription of this term loan facility reflects the increasing confidence of the market in the business strategy and focus of MNB and will enable MNB to develop its medium-term trade and structured facilities, both with its niche Russian markets and globally
A consortium of 18 banks from 13 countries participated in the transaction:
Arrangers are: ABC International Bank, Ahli United Bank, Bank r Arbeit und Wirtschaft, Bank of Tokyo Mitsubishi, Erste Bank, Magyar Kulkereskedelmi Bank, Sumitomo Mitsui Banking Corporation Europe.
Co-arrangers are: Union National Bank, AKA Ausfuhrkredit-Gesellschaft, Banca Monte dei Paschi di Siena, Bank Sepah International, Sabanci Bank.
Lead manager: The Arab Investment Company.
MNB is a UK regulated bank, incorporated in the City of London since 1919. The Borrower is 88.89% owned by the Central Bank of Russia and pursues a diverse approach to its asset portfolio. In addition to Russia which contributes around 30% of assets, 45% continue to be held in UK and European jurisdictions with the remaining portion of assets held in the Asia Pacific Rim. MNB has long term ratings of Ba1 (positive outlook) and BBB- from Moody’s and Fitch respectively
MNB is a specialist emerging markets bank, recognised for its expertise in structured trade finance and in Russian capital market securities. The bank has continued to accelerate the development of its Russian market business in 2003 and is one of the leading arrangers of structured loans for Russian borrowers. Overall, the group’s asset base stood at £1.05bn as of the end of 2003. MNB announced positive results for the year ending December 31, 2003 with core operating profit increasing 15% on the previous year to £13.9mn, resulting in overall profit after taxation for the year of £17.6mn.