The European Bank for Reconstruction and Development (EBRD), ING Bank and RZB have completed the syndication of a US$60mn loan to Russia’s Sibacadembank under an EBRD A/B loan structure. The loan proceeds are to be utilised for the purpose of financing small and medium-sized enterprises, as well as retail clients, in Siberia.

This is the first time a Russian regional bank has secured a two-year tenor on an international syndication. The loan was jointly arranged and fully underwritten by the EBRD, ING and RZB.

The EBRD is lender of record for the full amount and is providing a four-year loan using US$20mn of its own funds. The remaining US$40mn is being syndicated to 14 commercial banks, which are advancing two-year loans under the EBRD’s A/B loan structure. The B Loan was priced at Libor plus 1.7% per year.

The syndicate group includes ING Wholesale Banking, RZB, State Bank of India Nassau, Alpha Bank, Banco BPI Cayman, HSBC Bank, WGZ-Bank, American Express Bank GmbH, Bank Austria Creditanstalt, Caixa Geral de Depositos, Hypo Alpe-Adria-Bank International, National Bank of Egypt (UK), National City Bank, and Adria Bank. The agreements were signed on December 15, 2006.

Sibacadembank was established as a commercial bank in 1990. According to the central bank of Russia, as of July 1, 2006, Sibacadembank rated as the largest bank headquartered in the Siberian Federal District, the 27th largest bank in Russia in terms of total assets, the 22nd largest in terms of retail deposits and the 14th largest in terms of its outstanding consumer loan portfolio.

Sibacadembank has been actively expanding its network of branches across the region since 1998. In September 2006, the shareholders of Sibacadembank and Uralvneshtorgbank approved a decision to merge. The merger is expected to be completed in the first quarter of 2007.

The EBRD has a 28.44% equity stake in Sibacadembank.