Sberbank scoops $1.2bn syndicated loan

Russian state-owned bank Sberbank – Savings Bank of the Russian Federation – has secured a $1.2bn loan agreement from a syndicate of 12 international banks.

The deal attracted a low rate of 85 basis points over Libor and a tenor of three years with bullet repayment. While the loan closed oversubscribed in syndication, the bank will not be increasing the loan amount. Sberbank says it will use the proceeds for general corporate purposes.

Mandated lead arrangers included ABN Amro, Bank of Tokyo-Mitsubishi UFJ, Barclays Capital, BNP Paribas, Deutsche Bank, DZ Bank, ING Bank, Intesa Sanpaolo Bank, JP Morgan, Sumitomo Mitsui Banking Corporation, UniCredit and WestLB.

News of the deal coincided with a $200bn injection of liquidity by the Russian government into its domestic banking system, which has been hit by the credit crunch. A $150bn support package had been announced in September and, a month later, this was augmented by $36bn in fresh loans from the government.

Sberbank will receive about 500 billion rubles ($19bn), while VTB Group may borrow about 200 billion rubles, according to Russian President Medvedev.

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