Probusinessbank, Russia and Rosemount Global Trade Finance Fund have closed a US$30mn 18-month trade-related club loan financing. Probusinessbank will use the proceeds to finance cross-border import and export contracts of its strategic customers.


Rosemount was mandated lead arranger and sole bookrunner on the transaction.


In addition to Rosemount, the lending group includes one other investment fund and three international banks from Europe and the Middle East.


Law Debenture Trust Company of New York serves as the administrative agent.


The facility was originally launched at US$15mn. After a favourable market reception brought a 100% oversubscription, the facility was upsized and closed out by Probusinessbank at US$30mn.


This club loan offers further evidence of Rosemount’s commitment both to Probusinessbank and to the rapidly growing trade finance markets of the CIS region in general, claims Rosemount.


“We are pleased to have executed this successful trade-related club deal,” states Mikhail Zavgorodniy, vice-president and head of the international business department at Probusinessbank. “By so doing, we have tapped a new investor base in line with our strategy to diversify the bank’s funding sources. We look forward to successful future co-operation with Rosemount Capital and its experienced team of trade finance professionals.”


“We have followed with interest Probusinessbank’s strong asset growth, successful penetration of new markets and steadily strengthening financial indicators,” adds Jim Leonard, director of originations at Rosemount Capital.


“Rosemount is thus delighted to have been given this important opportunity to assist Probusinessbank in expanding its investor base and further extending its maturity profile for customer trade operations.”


Established in 1993, Probusinessbank is majority owned by its management with 65.5%, and with the remaining 34.5% interest held by a group of international institutional investment portfolios (Renaissance Capital Investment Funds, Argo Capital Management Investment Funds, 4 Blue Crest investment funds and East Capital Explorer Financial Institutions Fund).


Probusinessbank Group is among the 40 largest Russian banks by assets and among the 35 largest by retail deposits. The bank’s principal business activity is to provide banking services to small and mid-sized Russian companies as well as to individuals.