Russia’s Promsvyazbank Signs $120 Million Loan From Western Banks

Posted: November 19, 2014 in Econ 101, Sanctions on Russia Meaningless

SOURCE: http://www.reuters.com/article/2014/11/19/psb-loans-idUSL6N0T93WG20141119

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Russia’s Promsvyazbank signs $120 million loan

LONDON Wed Nov 19, 2014

(Reuters) – Russia’s Promsvyazbank (PSB) announced it has raised a one-year dual-currency $120 million-equivalent syndicated loan with a group of international banks.

The deal was arranged by Commerzbank and ING with Commerzbank acting as the transaction agent.

Lead managers and bookrunners were Commerzbank, HSBC, ING, JP Morgan, Societe Generale, Rosbank, mBank (Poland) and Citi.

The dual-currency loan is divided into two tranches a $100 million tranche and a 15 million euro(18.80 million US dollar) tranche.

The loan pays an interest margin of 250 basis points (bps) above six-month Libor/Euribor.

PSB will use the loan to finance customer trade deals.

Artem Konstandyan, PSB chairman of the management board said in a statement: “This transaction has been carried out with the participation of banks from the USA, Great Britain, Europe and Russia. Its successful completion confirms our strong position in capital markets in a difficult geopolitical environment.”

The bank was last in the market in October 2013 when it signed a $300 million-equivalent one-year dual tranche loan that paid 175 bps over Libor/Euribor.

This latest transaction is PSB’s fifteenth international syndicated loan since 2003. (1 US dollar = 0.7978 euro) (Editing by Christopher Mangham)

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