Related News

Deutsche Bank AG, London, RZB and Raiffeisenbank Ukraine as mandated lead arrangers have completed the senior phase syndication of the US$25mn syndicated trade-related term loan facility behalf of Ukraine’s Bank Aval.

Commerzbank AG, Frankfurt, has joined the at arranger level

The transaction was launched into general syndication on June 9. The tenor is 364 days and the funds will be used to finance specific trade-related transactions for Aval’s clients.

The loan carries an interest margin of 3.80% per year over Libor. In general syndication, lenders will be offered participations of US$1mn, US$2mn and US$3mn. The fee levels will be 0.65% flat, 0.75% flat and 0.85% flat respectively, giving an all-in return ranging from 4.45% per year to 4.65%.

Bank Aval is the largest bank in Ukraine in terms of total assets.

Aval Bank is a member of the EBRD’s Trade Facilitation Programme as issuing and confirming bank.

Ukraine’s sovereign long-term foreign currency rating was upgraded by Fitch Ratings to B+ on July 25, 2003. Ukraine’s foreign currency debt is B1 rated by Moody’s .

The Ukrainian economy expanded by 9.3% in 2003, after a 4.8% growth in 2002. This growth was based on a strong industrial output growth, especially in the construction and wholesale and retail trade sectors.