Commerzbank and Standard Bank Plc as mandated lead arrangers and bookrunners, have signed lenders into a US$35mn syndicated term loan for Russ-Bank. The facility was launched at US$25m, oversubscribed by 40% and subsequently increased. It is the second syndicated loan transaction for this borrower.
The facility has a tenor of 364 days and will be used for trade-related finance purposes. The margin is Libor + 2.85% per year.
Russ-Bank was established in 1994 (initially as Fintrustbank whose name was changed in 1995). It provides a wide range of corporate and retail banking services, including the provision of loans, auto-loans, mortgage, deposit-taking, and bank card services, securities trading, foreign exchange and precious metals transactions, leasing, correspondent banking, originating guarantees, and trade and project finance.
Russ-Bank is partly owned and controlled by Russia’s largest insurance company Rosgosstrakh (RGS) with total assets in excess of US$2bn and capital of US$538mn as of December 31, 2005.
Icebank is a lead arranger; LHB International Handelsbank a co-arranger, with VTB Europe. Credit Europe Bank, Amsterdam, Credit Europe Bank, Moscow, and Trade & Development Bank of Mongolia are lead managers.