Bank of Khanty-Mansiysk (BKM) has closed a US$60mn syndicated term loan facility arranged by initial mandated lead arrangers ING and Standard Bank Plc.

Standard acted as documentation and facility agent. The facility was launched at US$40mn and closed 50% oversubscribed at US$60mn as the borrower elected to take advantage of the whole increase. Some 18 banks joined the syndicate.

The facility is the second successful syndicated loan for BKM and replaces the bank’s US$43mn debut syndicated loan arranged by Commerzbank and Standard in December 2005 which was also oversubscribed.

The loan will be used to finance certain trade contracts of the borrower’s strategic clients.

The initial maturity date is 364 days from the date of signing of the facility agreement.

The Borrower may request an extension of the initial maturity date for up to 364 days. Extension of the facility will be at each individual lenders “option.

The margin is Libor + 0.90% per year.

Mandated lead arrangers are: Finansbank (Holland), International Moscow Bank, ICICI Bank Eurasia, VTB Bank Europe Singapore, and GarantiBank International.

Arrangers are: Bank Austria Creditanstalt and Chang Hwa Commercial Bank, Offshore Banking Branch.

Lead managers are: Landesbank Baden- Wurttembertg London, Alpha Bank, Bre Bank, Caixa Geral De Depositos France, Intesa Sanpaolo, and Export-Import Bank of the Republic of China.

Managers are: Banque BIA, Landesbank Berlin, and National Bank of Egypt (UK).

BKM is registered with the Central Bank of Russia (CBR), and holds all necessary approvals and licences to carry out its banking business operations. Founded in 1992, the bank is owned by the local government of the autonomous region of the Khanty-Mansiysk Okrug-Yurga (KMAO) – Russia’s most oil-rich region.

BKM is the largest bank in the Urals Federal Region of Russia. Most of its business is derived from servicing public institutions and entities under the control of the Okrug administration. BKM constantly ranks amongst the top 30 largest banks in Russia, (a market which still has over 1,300 domestic banks) and is included in the top five Russian regional banks.