Bank TuranAlem in Kazakhstanis borrowing US$30mn from the EBRD and a group of banks led by RZB to increase its lending to good local private-sector companies that are too small to attract foreign investment on their own.
Under the EBRD’s A/B-loan structure, US$20mn of the financing is being syndicated to seven participants: joint mandated arranger RZB; co-arrangers HVB Group, Erste Bank, Natexis Banques Populaires; lead managers Bankgesellschaft Berlin, Dresdner Bank; and manager Adria Bank.
The syndication of the B loan closed 30% oversubscribed, but was not increased.
Access to medium and long-term finance is limited in Kazakhstan, claims Hubert Pandza, the EBRD’s business group director for Central Asiaand Russia. This facility will be promoting local economic development by partially filling this gap. The ultimate beneficiaries will be smaller companies that are constrained by limited local funding sources.