By Ivan Anderzhanov in Moscow.
Russia’s MDM bank, which this month completed its merger with URSA, has mandated a roster of investment banks to arrange a a dual currency loan worth $175m at a rate of 4% over LIBOR.
Funds from the loan will be used to support trade financing or other trade-related projects of the bank’s clients, the group said.
Calyon, ING Bank, Raiffeisen Zentralbank Oesterreich, Standard Chartered Bank and VTB Bank are mandated to arrange the loan, which is part of the financing provided to the bank by the International Financial Corporation, the investment arm of the World Bank Group.
The group said funds from the loan will be used to support trade financing or other trade-related projects of the bank’s client.
The merged bank, which retains the MDM name, becomes the largest privately-owned bank in Russia by retail term deposits and retail loans, and second to Alfa by total assets and total capital.
Chairman Oleg Vyugin said recently that MDM may sell a minority stake to financial investors as growth in bad loans slows down.
