The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.
BANKING

Syndicated Loans: Asian demand for Russian loans

Late last year the fledging market for syndicated loans to Russian banks witnessed its most ambitious and successful deal to date. Tokobank, in its first syndication, raised $85 million at a spread of 4H% over Libor. This was the first loan for a Russian bank at a spread below 5% and more than twice the size of any other such deal.

The market for Russian bank debt has developed rapidly since the first deal, a $20 million extendible revolving credit for Mosbusinessbank arranged by Union Bank of Switzerland in mid-1995. That loan paid 5H% over Libor and was provided by six lenders. Spreads have fallen steadily since then and the latest deal, a $25 million credit for Bank Imperial launched last December, pays only 3M%.

Tenors have lengthened over the same period. The Tokobank deal has a one-year maturity and bankers believe that some of the top credits could raise funds over two years.

Bankers stress that this is a market for brave lenders. Most Russian banks will not divulge detailed information and it is hard to understand the few figures that are released. "We are working in a very difficult environment. It is very much a question of trust," says one banker.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree