Mandated lead arrangers and bookrunners BNP Paribas, Commerzbank and Standard Bank have signed a US$87.5mn syndicated trade-related term loan facility for TransCreditBank (TCB).
In light of recent credit disruptions in the capital markets, TCB had approached the market with a US$100mn facility, but following syndication the facility has been reduced.
The deal is structured as a two-year term loan, with the proceeds being partly used to finance lease and foreign trade contracts of the bank’s clients. The facility pays a margin of 45 basis points.
Commenting on the transaction, Oleg Panarin from the syndications team at TCB says: “This mandate was awarded in August, prior to the disruptions in the capital markets. It is a credit to the professionalism of the MLAs and the loyalty of our major relationship banks that we have successfully closed this important transaction.”
In addition to the initial arrangers, Morgan Stanley also joins as mandated lead arranger. JP Morgan has joined as senior lead arranger and ABN Amro, Citi and United Taiwan Bank join as lead arrangers.
TCB’s clients are mainly in the transportation sector, including Russian railways (RZD). The rail company is a 100% government-owned rail firm, which enjoys full state-backing and guarantee. It is set to acquire a 75% stake in TCB by the end of 2007.