Credit Bank of Moscow raised $50 mln from foreign banks by way of a syndicated loan


24 September 2007, Frankfurt-am-Main (Germany) — a US$50 million trade related syndicated loan facility agreement was signed for Credit Bank of Moscow. The loan has a tenor of 1 year with an extension option for 1 year. The interest rate is Libor+1.95% p.a. This is the lowest rate at which CBM has ever been able to raise unsecured syndicated debt.

This May saw CBM raising its first general purpose syndicated loan in amount of US$80 mln with a margin of 2.0% p.a. over Libor. Whilst in August its second car-loan backed syndicated loan was signed and paid 1.85% p.a. over Libor.

«CBM has been present in the international capital markets since 2003 as a borrower of syndicated debt, and since 2006 as an issuer of Eurobonds. This is the Bank's eighth syndicated loan. The reputation that CBM has built over the years has enabled the Bank to access new funding on attractive terms even against the background of the currently troubled international financial market. This testifies to foreign investors' high trust in the Bank and their positive outlook towards CBM's development prospects», — says Alexander L. Khrilev, Chairman of the Board — President of Credit Bank of Moscow.

The Initial Mandated Lead Arrangers on the loan were Commerzbank AG and Standard Bank Plc, with other lenders joining from Austria, UK, Hungary, Germany, Italy, Netherlands, Poland, Portugal, Singapore and the USA.

The proceeds will be applied to financing foreign trade activities of Credit Bank of Moscow's clients.