Published: March 26, 2014
Russian bank’s syndication succeeds despite political climate.
Credit Bank of Moscow (CBM) has secured a US$500mn syndicated loan from 17 different lenders. The facility, CBM’s largest yet, is the first to be secured by a Russian bank in 2014.
The oversubscribed loan has tenors of 364 days and 18 months and comes with an interest rate of LIBOR + 1.75% for the former and LIBOR +1.95% for the latter. Commerzbank, HSBC, ING, Raiffeisen Bank International, Rosbank, Sberbank and VTB Bank were among the mandated lead arrangers and bookrunners.
The success of the fundraising suggests that despite the threat of further sanctions by the US and EU, it is possible for Russian banks to tap the loan market at a competitive rate.