Russian bank MDM has signed a one-year US$250mn syndicated loan facility which was launched with an initial targeted amount of US$175mn. It was subsequently raised due to oversubscription with an order book amounting to almost US$300mn.
MDM Bank will use the proceeds of this syndicated loan for trade-related financing and other trade-related projects undertaken by the bank’s customers.
RZB, together with Calyon, ING, Standard Chartered Bank and VTB Deutschland acted as bookrunner and mandated lead arranger. Patrick Butler, board member and responsible for RZB’s investment banking activities, says: “This is the year’s first major international loan facility for a Russian bank.”
The deal also involved the participation of the International Finance Corporation (IFC), an arm of the World Bank providing financing to private companies. A total of 16 banks from 10 countries joined the facility. The interest rate is 4% per annum over LIBOR/EURIBOR.
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