JSC Eurasian Bank, Kazakhstan’s debut one-year US$15.5mn syndicated loan facility was signed in November in Almaty.
The mandated lead arranger, bookrunner and agent for the facility was Standard Bank London, and a total of nine banks participated in the transaction. The facility was launched at US$15mn and the borrower elected to take the oversubscription. This is the first occasion that Eurasian Bank has sought to raise finance from the international syndicated loan market.
The loan will be used to finance trade-related transactions of the borrower’s major customers.
There will be a bullet repayment.
The maturity is one year from the date of signing of the agreement.
The margin is Libor + 3% per year.
Lead managers were Export-Import Bank of the Republic of China; Mashreq Bank; SC Parex banka; RZB; and JSC Rietumu Bank.
Participants were: Bank of Overseas Chinese; ZAO International Moscow Bank; and Bank of Montreal.
JSC Eurasian Bank was incorporated in Kazakhstan in December 1994 and obtained its banking licence in February 1995. As at 30 June 2004 Eurasian Bank was ranked 7th in terms of assets (US$506m) and 6th in terms of share capital (US$43.9m).
Eurasian Bank has been a member of the Kazakhstan stock exchange since May 1996. Eurasian Bank has eight branches in the cities of Aksu, Rudnyi, Aktobe, Karaganda, Astana, Almaty, Kostanay and Ust-Kamenogorsk and plans opening a further five branches this year. This is an attempt to move its products closer to their clients and to facilitate the development of their interests in new regions.
Eurasian Bank’s primary business consists of commercial activities, trading with securities, foreign currencies and derivative instruments, originating loans and guarantees and custody operations. Since 2001, Eurasian Bank has been the operator of promissory note programmes for the Sokolovsko-Sarbaysky Mining and Metal Enriching Consortium and for Kazchrome.