Deutsche Bank and JPMorgan have closed the €270mn term loan facility for Zagrebacka banka dd (Zaba). After successful pre-syndication and general syndication phases, the facility was heavily oversubscribed and the amount increased from initially €150mn to €270mn.
The facility has a three-year tenor and a margin of 0.65% pa. At Zaba’s request and the lenders’ discretion, it can be extended for a further two years. The purpose of the facility is to provide Zaba with funds for onlending to its clients for general trade purposes and Deutsche Bank AG London is facility agent.
Ben Dobson of Deutsche Bank’s Global Trade Finance department comments: “The success of the transaction signifies the strong position of both Zaba and Croatia . It was clear from our discussions that investors held Zaba in high regard and valued their relationship with the borrower.”
Guy Brooks of Global Trade Finance’s distribution unit adds: “We were particularly pleased with the number and variety of banks who participated in the deal. Participants included banks from North America, Western Europe and Central Europe. This is further evidence of the global placement power of the two bookrunners, Deutsche Bank and JP Morgan.”
“The deal exceeded our high expectations and is now a Croatian benchmark syndication. It was very much relationship driven and it should put a smile on the faces of the lenders. There will be a lot of added benefit for lenders from this deal,” says Milivoj Goldstajn, member of the management board of Zaba.
Banks were invited into the facility at general syndication at the following levels: arrangers at 50bps; co-arrangers at 45bp; lead managers at 40bp; managers at 35bp; participants at 30bp.
Zaba is the largest bank in Croatia with total assets as of
List of financing banks:
Mandated arrangers Deutsche Bank AG London, JPMorgan
Arrangers Alpha Bank AE, BayernLB, HSH Nordbank, ING Bank, Bank Austria Creditanstalt (member of the HVB Group), Commerzbank Aktiengesellschaft, Erste Bank, KBC Bank, Wachovia Bank
Co-arrangers WGZ – Bank Westdeutsche Genossenschafts – Zentralbank eG
Lead managers Baden-Wurttembergische Bank, Bank of Montreal
Managers American Express Bank GmbH, Banca Nazionale del Lavoro, London branch, Commercial Bank of Greece, Israel Discount Bank of New York, Kommunalkredit Austria, Magyar K lkereskedelmi Bank
Participants Adria Bank, Bank of Valletta, Zrcher Kantonalbank, LHB Internationale Handelsbank, National Savings and Commercial Bank Ltd (OTP Bank), RZB, Zivnostensk banka.