RZB and JSCB Raiffeisenbank Ukraine (RBUA) as mandated joint arrangers, and a consortium of lenders, have signed into a US$13mn six-month syndicated trade finance facility for JSCB Ukrsotsbank.
The purpose of the facility is the financing of trade contracts of the Ukrsotsbank’s customers. The facility pays a margin of 4% per annum and represents the first syndicated facility in the Ukraine since the Russian crisis in 1998.
There is a six-month tenor with an extension and increase option of another six months at the lenders” discretion. Fees remain undisclosed.
There was an oversubscription of 30% in syndication and Ukrsotsbank decided to increase the amount from US$10mn to US$13mn.
A total of nine lenders (including the mandated joint arrangers) have joined the facility. RZB acted as bookrunner, is facility and documentation agent and was responsible for preparing the information memorandum.
RBUA is local facility agent.
HVB Group joins as an arranger. Participants are: Alpha Bank; Atlantic Forfaitierungs; Donau-Bank; Dresdner Bank Luxembourg; First International Merchant Bank; The International Bank of Azerbaijan; Rabobank International.
Ukrsotsbank is the successor of Zhylsotsbank of the former USSR and was founded in 1990. As of August 1, Ukrsotsbank is among the five largest banks according to capital, net profits and assets.
The borrower is around 65% owned by Closed JSC Ferrotrade International and 17% held by DP Merks-mebli, a company engaged in furniture production and trade.