Promsvyazbank prepays US$ 280 million syndicated loan

On 23 July 2009, Promsvyazbank (PSB) prepaid US$ 280 million syndicated loan. As per the terms of the loan agreement, the loan was due on 19 August 2009.

“The decision to prepay the loan has been made due to the large current liquidity in the bank in order to increase the operational efficiency.” said Artem Konstandian, First Vice-President of PSB. “This event will no doubt be treated positively by international financial institutions - partners of PSB.” The 12-month syndicated loan in the total amount of US$ 280 million was raised by PSB in August 2008.

The lead arrangers of the deal included Commerzbank AG, Emirates NBD, ICICI Bank Limited - Bahrain Branch, ING Bank N.V. and Raiffeisen Zentralbank Oesterreich AG. The interest rate was Libor + 1.2%. The funds were used to finance foreign trade transactions of PSB’s clients.

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About Promsvyazbank

OJSC Promsvyazbank, founded in 1995, is one of the leading privately-owned Russian banks, with total assets of RUB461.8 billion, and total capital of RUB49.9 billion under IFRS as of 31 December 2008. Holding company Promsvyaz Capital B. V. owns 84.68% of the Bank, the remaining 15.32% are owned by Commerzbank Auslandsbanken Holding AG, a subsidiary of the second-largest German bank Commerzbank AG. PSB has the following international credit ratings: “Ba2” from Moody’s Investors Service; “B+” from Standard & Poor's; “B+” from Fitch Ratings.  As at 1 July 2009, the regional network of the Bank in Russia encompassed 48 branches, 191 sub-branches and other types of outlets and 1 representative office; a foreign branch and a retail office in Cyprus; and foreign representative offices in Kyrgyz Republic, Ukraine, China, and India.

Banking Group Promsvyazbank includes OJSC Promsvyazbank (head organization), OJSC Volgoprombank, OJSC Yarsotsbank and OJSC Nizhny Novgorod Bank. www.psbank.ru

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