The European Bank for Reconstruction and Development (EBRD), Calyon, HSBC and RZB, as mandated lead arrangers, have closed a US$300mn loan for Russia’s Promsvyazbank (PSB) under the EBRD A/B loan structure.

The transaction was launched at US$200mn to a group of banks invited for take and hold tickets. The syndication was well received in the market and generated a substantial oversubscription.

The borrower elected to increase the facility amount, split as follows:

  •  US$85mn five-year A-loan for the account of EBRD.
  •  US$215mn three-year B-loan which was syndicated.

The margin on the B-loan is 1% per year. The facility will be used for general corporate purposes, including, but not limited to, trade finance, lending to SMEs and retail lending activities.

Calyon, HSBC and RZB acted as joint bookrunners in the B-loan facility with the EBRD acting as lender of record.

Banks were invited to join the facility at one of the following levels:

Mandated lead arrangers with US$10mn or more at 75bps flat.

Arrangers with US$7.5mn at 60bp flat.

Co-arrangers with US$5mn at 50bp flat.

Lead managers with US$2.5mn or less at 45bp flat.

PSB is a Russian commercial bank organised as a closed joint stock company under the laws of the Russian Federation, with its head office based in Moscow. PSB was incorporated as a limited liability company on May 12, 1995. A shareholder of the bank is Germany’s Commerzbank group controlling 15.3% of the borrower. The bank is rated Ba3/B+/B+ by all three major rating agencies.

PSB’s principal activities are currently in commercial banking and include commercial lending, factoring, deposit taking and payment and account services and international settlements, international trade and export credit agency-backed financing. In the commercial banking market, PSB also generates income from precious metals transactions, foreign exchange transactions and custody services.