OREANDA-NEWS. Emirates Bank, Fortis Bank S.A/N.V (Fortis) and Mashreq (together the “Initial Mandated Lead Arrangers” or “IMLAs”) are pleased to announce the successful syndication of a USD 125 Million term loan facility for one of the leading Russian private sector banks, JSCB Promsvyazbank. The facility was signed on 23rd May 2007, has a tenor of 364 days and pays a margin of 0.70% p.a over LIBOR. Proceeds will be utilized by JSCB Promsvyazbank for trade finance purposes. The facility was fully underwritten by Emirates Bank, Fortis and Mashreq with Emirates Bank and Fortis acting as the bookrunners.

This transaction has the distinction of being the 1st exclusively Middle East focused syndicated loan for any Russian Bank, in which only investors from Middle East region were invited to participate. Launched at USD 75 Million, the transaction achieved an impressive oversubscription, closing at a final amount of USD 125 Million. The Arrangers were successful in attracting a number of new investors for the borrower from key targeted countries in the Middle East including Oman, Kuwait, UAE, Bahrain etc.

The transaction highlights the growing importance of the Middle East & North Africa (MENA) region from the perspective of global borrowers like Promsvyazbank, who are keen to develop strategic and long term relationships with investors from this region.

To celeberate the conclusion of this highly successfull transaction, a commemorative event was held in Dubai on the 29th May 2007, attended by senior management officials from Emirates Bank, Fortis, Mashreq, Promsvyazbank and delegates from a number of participating banks.

Speaking on the occasion, Mr. Abdul Wahed Al Fahim, General Manager Emirates Bank said “Emirates Bank is recognized among the leading arrangers of debt and capital market transactions in the MENA region and is ideally placed to harness the potential for diversified global investment that exists in the region, with its forward looking strategies for inter regional co-operation. This landmark transaction further cements our position as the leading FI player in the MENA region and clearly displays our capabilities to deliver focused and tailor made transactions to meet the requirements of our valued institutional clients. Emirates Bank has always played a pioneering role in exploring new geographies and will continue to work closely with our partner banks across the globe to explore lucrative and viable business opportunities in developing markets”.

Also present on the occasion Mr. Levkovskiy, President of Promsvyazbank commented “I am delighted to announce that Promsvyazbank is the first Russian bank to enter a deal with focus on the Middle East only. Our syndicated loan attracted vast interest among the MENA regional investors and we hope to continue mutually beneficial cooperation with Middle Eastern financial community in the future. Successful placement of syndicated loan confirmed the leading status of Promsyvazbank and recognition of our achievements by international financial community.”

Mr Wauthier de Coswarem from Fortis stated “We are delighted to support Promsvyazbank with their inaugural Middle East focused syndicated loan. The MENA region is an area of increasing interest and importance to international borrowers and investors alike. Fortis has a strong international reputation and our Dubai office acts as a hub for developing business in the Middle East region. Fortis provides access to financing for it’s solid network of customers worldwide, and of particular reference here, in the CIS. The success of this syndication is based on the unique experience and joint efforts of Fortis and Emirates Bank, supported by partners from the Middle East.”

Mr Tariq Mateen Khan, Senior Vice President from Mashreq commented “With improving risks and pressure on pricing, regional banks have to keep diversifying their asset books. He also commented the need for regional banks to work closely to benefit with each other’s experiences in the global markets. Mashreq will continue its forward-looking strategies for Financial Institutions in the CIS region and explore more possibilities for inter regional cooperation”.