Troika Dialog and the European Bank for Reconstruction and Development signed a loan agreement totalling up to US$150mn over five years.
The official signing on July 6 came two weeks after approval had been given by the EBRD board of directors. The maturity of the loan is five years. The status of the loan is senior ranking and unsecured.
The purpose of the loan is to diversify Troika’s sources of funding and provide the group with a longer term and stable source of capital, according to the EBRD.
“The development of Russian capital markets is a key driver for increasing financial intermediation and cementing financial stability in the country,” says George Orlov, the EBRD’s director for financial institutions in Russia. “Financing Troika Dialog, a major local market player and a good EBRD partner, will contribute to the increase of activity and financial innovation in the market as well as strengthen market stability”, Orlov states.
Access to longer term funding enables the group to develop its role as one of Russia’s leading securities market maker by providing liquidity throughout market cycles and by maintaining confidence in the market system. This is the fourth international loan obtained by Troika Dialog and establishes the company as having a sound credit history.
The agreement with the EBRD follows the announcement of a strategic alliance between Troika Dialog and Standard Bank in March 2009 under which Standard Bank will, subject to regulatory approval, acquire a 33% stake in Troika Dialog.
Ruben Vardanian, chairman and CEO of Troika Dialog, says: “The alliance with Standard Bank provides Troika with a strategic partner. The loan with EBRD provides Troika with a financial partner. With both we are very well placed strategically and financially to take Troika’s business forward in the coming years as an independent house.”
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