Russia’s Vnesheconombank has awarded a mandate to Bank of Tokyo-Mitsubishi UFJ (BTMU), Deutsche Bank AG London (facility agent), Dresdner Kleinwort Wasserstein (documentation agent and info memo) and RZB as initial mandated lead arrangers and bookrunners for a US$500mn syndicated term loan facility.
The facility is structured as a term loan, with a tenor of three years and a quarterly amortisation schedule starting on the date falling 27 months after the signing date. The proceeds of the facility will be used for general corporate finance including the refinancing of the existing US$500mn syndicated facility signed in July 2005 as well as providing core clients of the borrower with trade-related finance.
The facility carries an interest margin of 35bp over Libor.
Vnesheconombank is working with the initial mandated lead arrangers to prepare general syndication which will be launched at the end of May, before which there will be a senior phase of syndication, which will be targeted primarily at Vnesheconombank’s relationship banks.
Vnesheconombank was established in 1924 as the Bank for Foreign Trade of the USSR. In 1988 as a successor it assumed all assets and liabilities of the former Bank for Foreign Trade of the USSR and received the status of a specialised state bank. As such, Vnesheconombank is 100% owned by the state; its primary mission being the facilitation of foreign economic affairs and the management of foreign debt and foreign assets of the former Soviet Union and now of Russia.