OREANDA-NEWS. September 03, 2007. Sergiy Naumov, Deputy Chairman of the Board of JSCIB “UkrSibbank”: Companies progressively apply to the banks for the extended limits of financing, which may not be rendered by a bank due to its low capitalization or certain lending policy constraints. It is mainly driven by the following factors, reported the press-centre of UkrSibbank:

swift economy growth and necessity of the companies to invest in renovation of production and development of new capacities;

vigorous growing of the companies and evidently, of the needs in considerable working assets;

rapid development of commercial real estate market.

Accordingly, Syndicated Lending is a product of high priority for Ukrainian banks. The idea of syndicate organization resides in the fact that a bank, which is incapable to fully finance a major project or deal, will attract the other banks for lending purposes, that enables it to find a solution for a client, to have its share in the deal and to diversify the originated risks by distributing them equally among the participants of a syndicated loan. Hence, up to 10 banks may be involved in large projects. Therewith a client will apply with a project and deal only with one bank being a book-runner. All the issues of legal execution and services will be settled by such bank. It is then an objective of a book-running bank to negotiate the structure of the deal, financing costs and terms with the other participating banks.

Being a part of BNP Paribas, a leader in Syndicated Lending, “UkrSibbank” puts a laser-like focus on this product. For a partial-year period the Bank has participated in Syndicated Lending of different projects in total amount of over USD 150 mln, where it was a book-runner as well as a participating party.