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Standard Bank London (SBL) as mandated lead arranger and a syndicate of lenders have signed a US$47mn syndicated trade finance facility for JSPP Aval, Ukraine. The deal was oversubscribed and Bank Aval elected to increase the facility amount from US$30mn to US$47mn.

The oversubscription underlines the strong confidence of international investors in Aval. Adrian Walker, head of distribution at Standard Bank London said: “We are delighted to continue our cooperation with Aval. This transaction represents continued confidence in Aval and in the Ukrainian financial institution sector, and is an endorsement of the renewed support that Ukraine enjoys since the election of President Yushchenko.”

The loan is trade related and the proceeds will be used to support the borrower’s major clients “export and import activities.

Some 18 banks (including the mandated lead arranger) have joined the facility. SBL was bookrunner and documentation agent on the transaction and also acts as facility agent.

Lead arrangers were: Abu Dhabi Commercial Bank; Anglo-Romanian Bank; and Group Pekao.

Sumitomo Mitsui Banking Corporation Europe acted as an arranger.
Lead managers were: AKA Ausfuhrkredit-Gesellschaft; American Express Bank GmbH;  Bank of New York; Demir-Halk Bank (Nederland); Dresdner Bank; Taiwan Business Bank, offshore banking branch.

Managers were: Atlantic Forfaitierungs; Banco Espirito Santo; Banif-Banco Internacional do Funchal; Bank of Overseas Chinese; Bre Bank; First International Merchant Bank; Finansbank (Holland).

Bank Aval raised US$45mn in August last year under Mandated lead arrangers Deutsche Bank London, RZB and Raiffeisenbank Ukraine. This was also oversubscribed, raised from an initial US$25mn.

Bank Aval is one of the largest banks in Ukraine in terms of shareholder equity (US$184mn as at December 31, 2004) and net assets (US$2.2bn as at December 31, 2004), operating a network of 1,400 branches with over 210,000 corporate clients. To date Bank Aval has raised the equivalent of over US$325mn from international financial institutions with a maturity profile of one to seven years.