NOMOS-BANK signs a mandate for the arrangement of a USD 80 million syndicated facility
NOMOS-BANK has signed a mandate for the arrangement of a USD 80 million syndicated facility with Standard Bank Plc and Raiffeisen Zentralbank Österreich AG. The loan is to be extended for one year with a possibility of prolongation for another 12 months. The loan’s rate is LIBOR+1.55% per annum.
The deal is expected to be closed by the end of April. The obtained funds will be used for the provision of finance to the Bank’s customers — gold—mining enterprises.
NOMOS-BANK has obtained thirteen syndicated loans totalling over USD 1 milliard since 2001, of which 6 facilities were related to gold production industry. In 2007, the Bank obtained four syndicated loans for a total amount of USD 430 million.
The latest facility for financing gold producers was received in late March 2007. The loan was extended in two tranches with a 12 and 18 months maturity. Standard Bank Plc, Raiffeisen Zentralbank Österreich è Société Générale were the arrangers of the loan. 35 lenders participated in the deal. The second tranche was redeemed in late December 2008. Depending on the term of the loan, the rates were LIBOR+0.9% (1 year) and LIBOR+1.1% (1.5 year).
The new facility carries a higher interest rate as compared with the previous year. Rate’s increase is due to the overall correction in the international inter-bank borrowing market following the mortgage crisis in the United States. Many foreign banks that traditionally partake in syndicated loans, are facing liquidity difficulties themselves, and inter-bank loan rates are on the rise everywhere. It is quite natural that under such circumstances shorter-term and higher-rate facilities have better chances for success.
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NOMOS-BANK is a universal network bank with branch presence in all major Russian cities. The Bank is on theTOP-20 list of biggest Russian banks in terms of own capital and assets. NOMOS-BANK is one of the most active and dynamically expanding commercial banks in Russia. Based upon nine months of 2007, NOMOS-BANK’s assets according to IFRS amounted to 150.8 milliard Roubles, loan portfolio — to 113.6 milliard Roubles, own capital — 18.6 milliard Roubles. The Bank’s net profit for the first three quarters of 2007 was 2.3 milliard Roubles.