JSCB Ukrsotsbank has closed general syndication of a US$12mn loan through mandated joint arrangers Raiffeisen Zentralbank Österreich AG and Raiffeisenbank <
xml:namespace prefix = st1 />Ukraine. Although it was the first syndicated trade finance facility for an Ukrainian bank since the Russian crisis in 1997, the transaction was very well received by the market and has achieved an oversubscription of 20%. The facility is now in documentation and is expected to be signed by the end of August.
The facility carries a final maturity of six months and is repaid in one amount at final maturity date. The facility is available for extension for another period of six months at each lender’s discretion. The loan will be used for financing of trade transactions of the borrower’s customers. The margin is 4% pa.
JSCB Ukrsotsbank is the successor of Zhylsotsbank of the former USSR and was founded in 1990. As of January 1, 2003, Ukrsotsbank is among the four largest banks according to capital, net profits and assets. The borrower’s assets amounted to Hv2.9bn (US$522mn) as of January 2003, an increase of 61% over the last year. The borrower is approximately 65% owned by Closed JSC Ferrotrade International and 17% held by DP Merks-mebli, a company engaged in furniture production and trade.