Alfa-Bank Ukraine scoops dual tranche loan

Alfa-Bank Ukraine has secured a $23.5m and €26.935m dual-tranche term facility after initially seeking a single tranche $60m.

The facility pays a margin of 200 basis points over Libor and has a tenor of 364 days with a 364-day extension option. The proceeds of the loan will be used by Alfa-Bank to finance its customers’ cross-border trade transactions.

The bank is ultimately controlled by Cyprus-based ABH Ukraine Limited, which is a part of the Russian Alfa Group. Bank president Petr Aven, a former Minister of Foreign Economic Relations for the Russian Federation under Yegor Gaidor, was a close associate of refugee oligarch Boris Berezovsky.

Alfa-Bank is rated B+ by Standard & Poors and B2 by Moody’s.

Shortly after the deal was signed, Aven revealed that Alfa had applied for $400m from the Russian government’s bail-out fund to help it meet a debt repayment to a number of foreign creditors. Without it, the bank would have been forced to hand over its 44% stake in Russian mobile telecoms provider Vimpelcom, which it had pledged as collateral for a $2bn loan.

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