A secured short-term loan facility syndication has been closed for Novaya Moskva Bank, Moscow (Nomos Bank). Mandated arrangers are Commerzbank, Standard Bank London and UFJ Bank. The facility was launched at US$40mn and closed 60% oversubscribed at US$64mn and the borrower has decided to take the increase.

The funds will be used by Nomos to partially finance various designated Russian gold producers (artels). The artels require these funds to purchase equipment and supplies for the 2004 gold mining season.

The proceeds will be used to finance various Russian gold producers (artels).

Repayment will be in three equal instalments during the last three months of the facility.

The maturity is 359 days from the date of signing of the agreement. The margin is Libor + 3.15% per year.

Arrangers are: Bayerische Hypo- und Vereinsbank, Moscow Narodny, Parex Bank, Atalanos Ertekforgalmi Bank, Erste Bank London.

Managers: Ost-West Handelsbank, Bankgesellschaft Berlin, Bank Natexis (ZAO), Dresdner Bank, Alpha Bank.

Participants: Rabobank, Union Bank of California.

This is the third year that Nomos has sought to raise finance from the international syndicated loan market. The facility will replace the US$47mn facility arranged and agented by Standard Bank London for the 2002/03 mining season that will be fully repaid prior to utilisation of the new loan.

Nomos is one of the largest financiers of Russian gold mining companies extending loans in excess of US$70mn in 2002. In addition to developing its precious metals trading business Nomos has continued to develop customer lending (the bank’s primary income generator) for corporate clients in the defence industry, including ship-building, aircraft-manufacturing and aerospace sector, and in the oil sector.

Nomos is one of the top 15 Russian financial institutions in terms of equity capital (US$193mn as at December 31, 2002) and one of the top 20 in terms of assets (US$692mn as at December 31, 2002).

In November 2002 Fitch reconfirmed Nomos’s foreign currency long-term credit rating to B and local currency long-term rating of B.