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DZ Bank and RZB, as mandated lead arrangers and underwriters, have closed syndication of a €40mn syndicated term loan facility on behalf of NordLB Latvija JSC. The arrangers had to close syndication ahead of schedule due to a healthy oversubscription and following the borrower’s decision not to increase the total facility amount. At that time, an aggregate volume close to €55mn had already been raised.

Some 11 banks have joined (including the mandated lead arrangers) the facility, which is now in documentation. The signing is envisaged for early May.

Repayment will be bullet in a single amount. The tenor is three years, extendable for a further three years at the lender’s discretion.

The margin is 32.5bp per year.

The facility benefits from an ownership maintenance clause (90%) and a letter of comfort issued by Norddeutsche Landesbank Girozentrale, Germany.

NordLB Latvija’s roots go back to 1989 and it was formerly known as Rigas Komercbanka. It was one of the first banks established after the Republic of Latvia became independent.

Currently, the borrower is 99.47% owned by Germany’s Norddeutsche Landesbank Girozentrale (also known as NordLB, Hanover), which acquired the majority of NordLB Latvija’s equity back in June 2000.

The NordLB Group ranks number four among all Baltic banking groups. As of June 30, 2003, NordLB Group had total assets of €197bn and equity of €5.1bn.