MDM Bank has signed a dual tranche US$550mn syndicated term loan facility. The facility was launched at an initial amount of US$500mn and on account of good market response was closed at an oversubscription of US$550mn. The total facility is divided between a one-year tranche US$307.50mn and three-year tranche of US$242.50mn.
The borrowing would be used by MDM Bank for trade financing activities.
Alpha Bank, Bank of Tokyo-Mitsubishi UFJ, Commerzbank, Fortis Bank, ICICI Bank UK, Natixis, RZB and Sumitomo Mitsui Banking Corporation Europe acted as arrangers.
This is a landmark transaction for MDM as the borrower’s largest ever and the first three-year market borrowing after its similar EBRD facility earlier in the year.
MDM Bank was founded in December. It is one of the most profitable banks in Russia. MDM Bank has one of the highest credit ratings among privately-owned Russian banks: Standard & Poor’s (BB-, stable), Fitch Ratings (BB-, positive) and Moody’s (Ba1, stable), and is the only Russian financial organization that has been given a public corporate governance rating by Standard & Poor’s (6+).