Bankgesellschaft Berlin (BGB), HVB Group, HSH Nordbank and Natexis Banques Populaires have been mandated to lead arrange a US$100mn syndicated term loan facility for Moscow Narodny Bank (MNB). The transaction, which has been fully underwritten by the mandated lead arrangers, will be launched into general syndication shortly. The proceeds of the loan will be used for general funding purposes.
BGB, HVB and HSH will act as joint bookrunners, with HVB acting as documentation and Natexis as facility agent.
The tenor is three years. The loan is structured as a single bullet repayment at a margin of 1% per year.
MNB is a UK regulated bank, incorporated in the City of London since 1919. The borrower is 88.89% owned by the Central Bank of Russia and pursues a diverse approach to its asset portfolio. In addition to Russia which contributes around 30% of assets, 45% continue to be held in UK and European jurisdictions with the remaining portion of assets held in the Asia Pacific Rim. MNB has long-term ratings of Ba1 (positive outlook) and BBB- from Moody’s and Fitch respectively. The bank is currently working towards a sale.