Standard Bank Plc as mandated lead arranger and a syndicate of lenders have signed a US$12mn syndicated trade finance facility for OJSC Kreditprombank, Ukraine. The deal was oversubscribed and Kreditprombank elected to increase the facility amount from the US$10mn launch amount.
The oversubscription underlines the strong confidence of international investors in Ukraine and in the Ukrainian financial institution sector, claim those involved.
The loan is trade-related and the proceeds will be used to support the borrower’s major clients “export and import activities.
Some seven banks (including the MLAs) joined the facility. Standard was bookrunner and documentation agent for the transaction and also acts as facility agent.
Kreditprombank is ranked 11th bank in Ukraine in terms of capital.
According to the 2004 audited accounts, the bank had total assets of UH1.357bn (US$256mn) and total shareholders “equity of UH195.8mn as at December 31, 2004. The audited accounts also showed that the bank’s loans to customers across various sectors of the Ukrainian economy grew by 43.09% in 2003 and by a further 10.57% in 2004. However the share of non-performing loans accounted for only 3.25% as of 31 December 2004.
According to Kreditprombank, it is a universal banking institution that offers a full range of services to its individual and corporate clients and is one of the top 20 Ukrainian banks in terms of capital and customer deposits.