Ukraine-based UkrGasBank has successfully closed its debut a US$16mn syndicated trade-related term loan facility. Standard Bank Plc acted as mandated lead arranger and facility agent for the facility.

After extremely successful pre-syndication and general syndication phases, the facility was heavily oversubscribed by 60% and the amount increased from initially US$10mn to US$16mn, which was fully taken by the borrower. The facility carries a margin of 3.10% per year above Libor.

A total of eight financial institutions from six countries joined the transaction. The facility has a tenor of 364 days from the date of signing and bullet repayment at maturity. UkrGasBank intends to use proceeds to finance specific export/import contracts of its strategic clients.

Banks and financial institutions involved into the facility include AKA Ausfuhrkredit, Ukreximbank, National City Bank, Commerzbank, FBN Bank (UK), Finansbank (Holland) and Icebank.

Vadim Lyashko, chairman of the board, says: “This transaction represents a new level of our successful cooperation with financial institutions, and the oversubscription from a wide range of international banks demonstrates the high level of interest in our business. We were particularly pleased with the number and variety of banks who participated in the deal. Participants included our established partners and new comers to our joint cooperation.”

UkrGasBank is the 18th largest bank in the Ukraine in terms of total assets and the 13th largest in terms of deposits. The borrower is rated ‘B2’ by Moody’s.