NOMOS-BANK becomes an active participant in the conference “Trade and Corporate Finance in Russia and CIS”

NOMOS-BANK attracted over USD 740 mln of funding under trade finance deals and foreign trade linked syndicated loans in 2007, which surpassed by more than twofold the corresponding levels registered in the previous year 2006. Yuri Lekarev, Director of NOMOS-BANK’s Department of International Operations, made this announcement speaking as President of the “Trade and Corporate Finance in Russia and CIS” conference, which took place in London on 17—18 April.

The event was attended by representatives of major Russian and foreign banks, leasing companies, export credit agencies and other organisations engaged in foreign economic activities. The discussion focussed on the existing trends in trade and corporate finance and future development prospects in those areas. The audience expressed particular interest in practical examples of activities in that sphere: effective solutions for lowering trade finance related risks, complications that companies are facing in deals restructuring, as well as the impact of the liquidity crisis on the bank’s capacity to finance foreign trade operations.

The liquidity crisis did not affect in any practical aspect our capacity to obtain funds for trade finance, — said Yuri Lekarev. — Foreign banks continue to willingly extend loans for import or export financing. Over the first three months of 2008, NOMOS-BANK attracted over USD 100 mln of funding only under letters of credits with post-financing and payment by instalments. Today, those borrowers (except for the companies that have investment ratings) are facing problems that enter the market for non-secured loans or loans without specified purpose.

Yuri Lekarev shared with the audience the experience that NOMOS-BANK has accumulated as a major Russian borrower of funds in the international markets for the provision of finance to gold industry companies. The latest syndicated two-tranche loan exceeding USD 150 mln was obtained in late March 2007. 35 creditors partook in the deal.

NOMOS-BANK has already redeemed the first tranche of the loan and signed a mandate for the arrangement of a new syndicated facility for USD 80 mln. The loan will have a one-year maturity with an option of extension for another 12 months. The interest rate is LIBOR+1.55% per annum. In spite of the market difficulties, the deal has been very well received by foreign creditors, and the Bank expects to close the transaction with oversubscription.