International business

History of international borrowings

14 January 2010. EBRD lends USD 30 million to Russia's RosEvroBank. Two EBRD loans totalling $30 million to Russia’s Rosevrobank will enable this key lender to micro and small businesses to provide additional funding to a vital sector of the Russian economy badly hit by the drying up of credit due to the crisis.
Rosevrobank is one of the few Russian banks to have continued to finance micro, small and medium-sized enterprises (MSME’s) through the financial turmoil.
This activity represents its core business and Rosevrobank was at the end of June 2009 rated the 12th largest Russian bank in terms of MSME loans outstanding – even though its share of total bank assets is much smaller.
The EBRD is making available to Rosevrobank a senior loan of $15 million under its Multi-Product Framework for Russian Regional Banks for on-lending to small businesses, as well as a $15 million loan under the EBRD’s Russian Small Business Fund (RSBF). Both loans have a three-year maturity.
By providing loans that will allow Rosevrobank to consolidate its market position as well as strengthen its balance sheet, the EBRD is sending a strong signal of its confidence in Rosevrobank’s future and will help Rosevrobank to become yet more active in lending to MSME, said the EBRD’s Director for Financial Institutions Russia, George Orlov.

On 16 July 2009 Rosevrobank signed USD 20 million 5 year loan agreement with KfW Entwicklungsbank. Funds are intended for SME lending development and climate protection projects in the Russian Federation. For more information please visit:
http://www.kfw.de/EN_Home/Presse/PressArchiv/2009/20090716.jsp?logo=logo_bankengruppe.gif

In August 2008 RosEvroBank attracted bi-lateral loan from Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG) for amount USD 15 million for 7 years. Funds are intended to support lending programs of RosEvroBank to dealers and end users of German agricultural equipment. Grace period is 2.5 years. DEG is shareholder of RosEvroBank (6% of shares), representative of DEG is member of Board of Directors of RosEvroBank. This transaction became the third loan raised by RosEvroBank from KfW Banking Group (in 2005-2006 RosEvroBank attracted 2 loans from KfW for more than USD 15 million), besides since December 2007 RosEvroBank attracted 2 loans from the European Bank of Reconstruction and Development (EBRD) in Russian Rubles and U.S.dollars for more than USD 50 million, tenor is 5 years.

On 30 June 2008 RosEvroBank signed the second loan agreement with EBRD. On 30 June 2008 RosEvroBank signed loan agreement with EBRD for amount USD 30 million for 5 years. Funds are intended to finance small business lending program of Rosevrobank. This is the second loan which RosEvroBank received from EBRD - in December 2007 RosEvroBank signed loan agreement for RUB 620 million in order to further develop its programs of micro lending and lending to credit cooperatives.

11 June 2008, New-York — Rosemount Capital Management, LLC is pleased to announce that Rosemount Global Trade Finance Fund, L.P. (“Rosemount”) and National City Bank, as Mandated Lead Arrangers, have closed a US$20,000,000, 24-month trade-related syndicated term loan for Joint Stock Commercial Bank “RosEvroBank” (“RosEvroBank”). The facility was signed on May 30, 2008, and will be disbursed during the week of June 9. Rosemount was the sole Bookrunner on the transaction, while National City Bank acted as Facility Agent. The lending group also included Indover Bank, FBN Bank (UK), LHB Internationale Handelsbank AG and Standard Bank Plc.

The Facility was originally launched at $15 million, but was increased to $20 million on an oversubscription. RosEvroBank will use the Facility proceeds to finance specified cross-border trade finance contracts of its strategic customers.

“We thank Mandated Lead Arrangers and Lenders of this syndicated loan for their continuing support of RosEvroBank. The transaction was the 7th syndicated loan and was very successful for the Bank, we were among the few Russian banks to tap syndicated loan market in the current market conditions. Again, we thank our partners who paid attention to clear strategy, strong financial position and positive dynamics of development of Rosevrobank” - stated Alexander Arkhipov, Head of International Business Development at RosEvroBank.

According to Jim Leonard, Director of Originations at Rosemount Capital, “one of the first transactions our fund ever booked was a bilateral trade loan to Moscow-based RosEvroBank. Since then, we’ve concluded a steady stream of successful bilaterals, club loans and syndications for this fast-growing bank. When Rosemount and National City Bank arranged a small syndication for RosEvro earlier this year, we saw there were several interested lenders who could not commit due to timing considerations. Through our latest syndication, we managed to pull in some of lenders, thereby raising to $42.5 million the total amount of syndicated financing we have raised for RosEvroBank over the past few months.

RosEvroBank is medium-sized Russian bank primarily focused on servicing of corporate customers. As of April 01, 2008 Bank’s assets exceed USD 2.5 billion, equity is amounted USD 260 million, loan portfolio exceeds USD 1.3 billion. The Bank serves more than 12,000 corporate and 90,000 private customers in 30 Russian regions. More information is available at www.rosevrobank.com.

Rosemount Global Trade Finance Fund, L.P. is managed by New York-based Rosemount Capital Management, LLC. The fund was launched in December 2005 and works with exporters, importers and banks on a global basis to provide traditional and innovative trade finance debt facilities. A more detailed description of Rosemount Capital and its business can be found at www.rosemountcapital.com.

On 19 May 2008 RosEvroBank, one of Russia’s fifty largest banks by assets, announced today the successful issuance by Rosevro Finance Limited, a Cypriot-based company, of the second tranche under its US$500 million Loan Participation Note program. The second tranche raised US$80 million and was issued at an 9.25% yield with a one-year tenor. Alexander Arkhipov, Head of International Business Development for Rosevrobank, noted: “We are pleased to be the third Russian bank – and first non-investment grade Russian bank – to successfully tap the international debt capital markets in over ten months. We greatly value our relationship with our international noteholders and are pleased by the positive reception and support they continue to give us. We look forward to successful future issues under this program.”

The money raised by the issuance will be on-lent by Rosevro Finance Limited to Rosevrobank and used to fund the growth of the bank’s loan portfolio. The arranger and dealer was BCP Securities LLC, a US-based boutique investment bank specializing in emerging markets fixed income securities. BCP Securities’ President Randall Pike stated: “We are proud to work with such a solid bank as RosEvroBank and contribute to the bank’s continued growth by helping it tap a sophisticated global investor base seeking attractively priced fixed income investment opportunities in emerging markets. We also take pride in having successfully brought the first non-investment grade Russian bank to market since the liqudity crisis began in July 2007. We look forward to continuing to contribute to Rosevrobank’s growth going forward and truly value the bank as a long-term partner.”

On 25 January 2008 RosEvroBank signed individual Loan Agreement with Black Sea Trade and Development Bank for amount USD 20 million for 6 years. Funds will be intended for partial refinancing of mortgage portfolio of RosEvroBank.

Black Sea Trade and Development Bank (BSTDB) is an international financial institution formed by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey, and Ukraine. BSTDB started its operations on 01 June 1999, is rated Baa1 (Moody's) and is headquartered in Thessaloniki (Greece).

On 24 January 2008 RosEvroBank (Moscow, Russia) signed Loan Agreement concerning attraction of syndicated loan for total amount USD 22.5 million for 1 year from a syndicate of foreign institutions led by Rosemount Global Trade Finance Fund L.P. (New York, USA) and National City Bank (Cleveland, USA). Besides these institutions banks from Portugal, Slovenia, the Netherlands and Russia participated in the Facility. RosEvroBank intends to use attracted funds for financing of export-import transactions of its customers. This transaction became the 6th syndicated loan attracted by RosEvroBank.

On 27 December 2007 RosEvroBank signed individual Loan Agreement with the European Bank for Reconstruction and Development (EBRD) for amount RUB 620 million for 5 years. Funds are intended to support small and micro-lending programs of RosEvroBank as well as programs for lending to credit cooperatives.

On 20 November 2007 RosEvroBank signed bi-lateral Loan Agreement with National City Bank (Cleveland, USA) for amount USD 20 million. The respective amount was received by RosEvroBank on 29 November 2007. Tenor of loan is 5 years, grace period is 2 years. Loan is partially guaranteed by the Overseas Private Investment Corporation (OPIC) which is US Government agency. Funds are intended to support SME lending programs of RosEvroBank outside Moscow.

On 22 October 2007 RosEvroBank attracted car loans-backed syndicated loan for USD 22 million at LIBOR + 2.25% p.a. Facility Agreement was signed on 12 October 2007 in Moscow. Tenor of syndicated loan is 1 year (with the possibility to prolong the facility for 1 more year). Standard Bank Plc (London, United Kingdom) acted as Mandated Lead Arranger of the transaction. Standard Bank Plc (London, United Kingdom) also acted as Facility Agent, Security Agent and Security Monitoring Agent of the transaction. Besides, 5 more banks from United Kingdom and the Russian Federation have participated in the transaction. Proceeds from the syndicated loan will be used to finance and refinance current and future car loans pofrtolio of RosEvroBank. Syndicated loan was secured by sub-loan agreements concluded between RosEvroBank and its customers. Total amount of security was USD 26.4 million. At the time of transaction total volume of car loan portfolio of RosEvroBank exceeded USD 40 million, NPL is 0.4%.

RosEvroBank is among the top 35 operators in the Russian car loan market, offering financing to private individuals under two different basic products with tenors of up to 5 years. Traditional car loans have a low initial down payment with the financing repaid to the Bank under monthly payments of principal and interest. Contract purchase facilities, currently the more popolar scheme, involves a larger down payment followed by equal principal payments to the Bank, with the financing return being earned through a skim of annual insurance premiums. 88% of the current portfolio is represented by contract purchase and 12% - by loans. In 2006 the Bank's car loan portfolio grew by 857% up to USD 26 million, following full implementation of the current program in November 2005. This is the 5th syndicated loan attracted by Rosevrobank.

In June 2007 RosEvroBank attracted its forth 2-year syndicated loan for USD 45 mln. at LIBOR + 2% p.a. Mandated Lead Arrangers were Commerzbank AG and Bank Austria-Creditanstalt AG.
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In April 2007 RosEvroBank performed its debut LPN transaction for USD 150 million. Tenor is 18 months, coupon is 9.00% p.a. Transaction was arranged by BCP Securities LLC.
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In December 2006 RosEvroBank attracted its third 2-year syndicated loan for USD 13 mln. + EUR 16 mln. at LIBOR/EURIBOR + 2,85% p.a. Mandated Lead Arrangers were VTB Bank (Deutschland) AG and Landesbank Berlin AG.
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On 26 June 2006 RosEvroBank attracted its second USD 53 mln. 1-year syndicated loan at LIBOR plus 3,15% p.a. with the possibility to extend the validity of loan for 1 more year. Mandated Lead Arrangers were Raiffeisen Zentralbank Oesterreich AG and ZAO Raiffesenbank Austria.
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On 19 December 2005 RosEvroBank attracted its first USD 15 mln. 1-year syndicated loan at LIBOR plus 3,65% p.a. As a result of oversubscription, the loan amount was increased from USD 10 mln. to USD 15 mln.. Ost-West Handelsbank AG, Frankfurt am Main, Germany acted as Mandated Lead Arranger. RosEvroBank intends to use the loan for the financing of export-import transactions of its corporate clients.
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On 10 October 2005 RosEvroBank signed a USD 12 mln. Individual Loan Agreement with Kreditanstalt fuer Wiederaufbau, Frankfurt am Main, Germany (KfW). In accordance with the Agreement, RosEvroBank will receive long-term financing for 7 years to develop its SME lending programmes.
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For more information please contact Head of International Business Development Administration Alexander Arkhipov