RZB, ZAO Raiffeisenbank Austria (RBA) and OJSC Vneshtorgbank-Bank for Foreign Trade (VTB) as mandated lead arrangers and a consortium of lenders have signed into the US$14mn syndicated term loan facility for Moscow Bank for Reconstruction and Development (MBRD).

The funds will be used to refinance the borrower’s loans disbursed to its customers, in particular on-lending to its top telecoms customers.

The facility was very well received by the market and an oversubsubscription of 40% was achieved. MBRD has decided to increase the facility amount from US$10mn.

MBRD is part of Sistema JSFC, a financial industrial group. Some of the more significant group companies are in the telecoms sector and include Mobile TeleSystems (MTS).

In 2002 Sistema had total revenues of US$904mn and net income of US$166mn on a consolidated basis.

MBRD is a universal commercial bank chosen by Moscow’s administration as its authorised bank. Moreover, the bank offers a full range of services to its clients. Besides its Moscow office, MBRD is developing its regional branch network.

A total of six lenders have joined the facility:

RZB (bookrunner, facility and documentation): US$3mn; Vneshtorgbank: US$4mn; International Moscow Bank: US$3mn; Turkiye Is Bankasi, London: US$2mn; Denizbank: US$1mn; Undisclosed investor: US$1mn.