Agricultural Bank of China contributes to a $535 million USD syndicated loan to MDM Bank for trade financing

Project narrative

In July 2008, a syndicate of 29 banks — including the Agricultural Bank of China (ABC) — entered into a $535 million USD syndicated loan agreement to Russian bank MDM Bank. The loan contained two tranches: a $35 million USD “A” tranche holding a four-year maturity and a one year grace period, and a $500 million USD bullet term loan “B” tranche holding a one-year tenor and an interest rate based on a floating margin of 90 bps. Tranche “A” was fully provided by the International Finance Corporation (IFC), and was to be used for energy projects. Tranche “B”, the syndicated part of the loan, was to be used to support trade financings. 29 banks participated in the $535 million USD syndicated loan. Mandated lead arrangers and bookrunners were Calyon, Erste Bank, ING, and RZB. Mandated lead arrangers were Commerzbank, DZ Bank, Emirates NBD, Intesa Sanpaolo, Korea Development Bank, Sumitomo Mitsui Banking Corporation, and Wachovia Alpha Bank was a lead arranger. Bank of Ireland was an arranger. Agricultural Bank of Greece, Bradesco, First Gulf Bank and Piraeus Bank were co-arrangers. WGZ was the sole senior lead manager. ABC, Banco Itaú, Bank Leumi, Bank Muscat, Banque BIA, Citigroup, Pohjola Bank, State Bank of India and Zürcher Kantonalbank served as lead managers.