10.07.2008 /Operations
 Locko-Bank signes into new syndicated loan
Moscow, July 9, 2008—IFC, a member of the World Bank Group, and LOCKO-Bank signed a loan agreement for the provision of an A+B structured US$ 65 million loan. The financing package comprises a three-year US$ 20 million loan for IFC’s own account and a one-year US$ 45 million loan provided by a syndicate of 13 commercial banks. The IFC tranche yields 325 basis points over Libor and is supporting the lending program and regional expansion of LOCKO-Bank. The syndicated commercial tranche bears interest of 275 basis points over Libor and is trade related. It was solely bookrunned by IFC and was oversubscribed 2.25 times. The syndicate includes: - Mandated lead arrangers: Banif, Commerzbank, FBN Bank (United Kingdom), OCBC Bank, RZB, VTB Bank (Deutscheland)
- Lead arrangers: Bank Leumi, Deutsche Bank, and Erste Bank
- Co-lead arrangers: LHB Bank and National City
- Arrangers: Anglo-Romanian Bank and BRE Bank
Mikhail Pavlov, Deputy Chairman of the LOCKO-Bank Executive Board, said, “We welcome this financing from IFC and its syndication partners. It will help us serve our clients better, accelerate economic expansion in Russia, and introduce us to the new financiers that participated in the syndicated loan.” IFC became a shareholder of LOCKO-Bank in 2006, and it has a seat on the board of directors and actively participates in the bank’s strategic management. Nena Stoiljkovic, IFC Director for Central and Eastern Europe, said, “We are excited to work with LOCKO-Bank as a shareholder and financier. We are very satisfied with the bank’s dynamic development and look forward to its further growth and geographic expansion.” About LOCKO-Bank “LOCKO-Bank” (CJSC) was founded in 1994. The Bank’s strategy is focused on the development of SME lending. As of March 31, 2008, the Bank’s assets amounted to RUR 28,712 million. The Bank’s branch network covers 25 regions of the Russian Federation. 15% of the Bank’s equity is held by the International Finance Corporation (IFC) and 11.06% by the Swedish investment fund East Capital. The Bank was assigned two international long-term credit ratings “B” and “B2” by Fitch Ratings and Moody’s Investors Services, respectively.
www.lockobank.ru/eng/ About IFC IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that poor people should have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through syndications and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit www.ifc.org. Russia became a member and shareholder of IFC in 1993. Since then IFC has invested more than $3.6 billion in the country, including $527 million in syndicated loans. IFC’s investment portfolio in the country stands at $2.24 billion, making it the largest country exposure for IFC globally. IFC has invested in key sectors including banking, leasing, housing finance, infrastructure, mining, agribusiness, pulp and paper, construction materials, oil and gas, telecommunications, information technologies, retail, and health care. For more information, visit www.ifc.org/europe.
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