On the 14th of March 2006 the Syndicated Loan Agreement was signed at the Head Office of Bayern LB in Munich. The amount of the Loan is EUR 38 mln. (press-release)

As announced earlier, in December 2005 the Board of Belarusbank decided to attract a debut untied Syndicated Loan. The German bank Bayerische Landesbank was selected as the Mandated Lead Arranger. This bank is one of the leaders on the European syndicated loan market.

On the 14th of March 2006 the Syndicated Loan Agreement was signed at the Head Office of Bayern LB in Munich. The amount of the Loan is EUR 38 mln.. On behalf of Belarusbank the Agreement was signed by the Chairperson of the Board Nadezhda Ermakova; Bayern LB was represented by Ulrich Mattonet,  Senior Vice-President. The Agreement was also signed by authorized representatives of the banks that participated in the Syndicated Loan.

The attraction of the Syndicated Loan is a strategically important step aimed at strengthening Belarusbanks position on the international financial market, reaffirming its leading role in international cooperation development on the national scale.

An impeccable business image of Belarusbank, presence of diverse long-term ties with foreign partners and banks effectiveness led to a high level of interest in this deal on behalf of foreign investors. As a result, 21 banks from 14 countries participated in the Syndicated Loan. Initially, the amount of the Loan was declared at EUR 15 mln., however, due to high interest on behalf of foreign participants, the total amount of the facility was increased to EUR 38 mln. The Loan is provided for the term of 180 days with an option to prolong for additional 180 days. This is a record indicator for Belarus in terms of the amount of the loan, the number of participants and their geographical distribution.

The significant element of this transaction is the fact that Belarusbank became the first state-owned bank of the Republic of Belarus to implement such project. This shows a significant level of trust on behalf of international banking community to Belarusbank and to the country overall.

For the first time the Loan was placed exclusively  through a western bank and was aimed at attracting mainly western investors. The leaders of the European banking sector such as Bayerische Hypo und Vereinsbank, Commerzbank, Dresdnerbank, AKA Ausfuhrkreditgesellschaft mbH participated in the Syndicated Loan, as well as other banks from Germany, Austria, Switzerland, Great Britain, the Netherlands, Luxemburg, Poland and other countries.        

The successful realization of this project will be a basis for future attraction of loan facilities for the benefit of the Government, major enterprises, small and medium businesses. This will also allow Belarusbank to continue strengthening its positions as the largest international bank of the Republic of Belarus, to move to a new level of cooperation on international financial markets.

Since 2003, Bayern LB has arranged 89 syndicated loans amounting to over USD 6 bn. for various financial and credit institutions. The bank holds the highest credit ratings, assigned by leading rating agencies.

(Belarusbank press service tel. +375 (17) 218 85 33)

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