Russia’s Promsvyazbank (PSB) has mandated four banks to arrange and fully underwrite a US$400mn dual-tranche syndicated trade-related term loan facility which will be used for trade-related purposes as well as to refinance two existing syndicated loans of PSB.
Commerzbank, Soci&eaute;té Générale Corporate and Investment Banking and Banque Soci&eaute;té Générale Vostok (BSGV), Sumitomo Mitsui Banking Corporation Europe (SMBCE) and WestLB London, have been mandated as bookrunners and initial mandated lead arrangers.
Prior to launch of syndication ICICI Bank UK joined the transaction as an initial mandated lead arranger.
SMBCE is acting as facility agent.
Promsvyazbank 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.
As at the date hereof, PSB is rated Ba3/B+/B+ by Moody’s Investors Service, Fitch Ratings and Standard & Poor’s Ratings Services respectively.
In November 2006, Germany-based Commerzbank acquired a 15.3% stake of Promsvyazbank through a subscription in a capital increase.
PSB’s principal activities are currently in commercial banking and include commercial lending, factoring, deposit taking, payment and account services, 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.
The bank also offers investment banking services, including the origination and underwriting of municipal and corporate domestic bonds, mergers and acquisitions advisory and management consulting services.
In addition, the bank performs asset management services, including private client services, mutual fund and pension fund management, securities brokerage and proprietary securities trading. PSB is expanding its retail banking business and currently offers deposit taking and account services, debit cards, consumer, car and mortgage loans, and certain ancillary services to the general public.
The US$400mn facility is equally split between a 364-day Tranche A and an 18-month Tranche B paying margins of 60bp per year and 70bp respectively.
Syndication was launched on June 1.