Russo-based financial institution gains financial resources
The International Bank of St. Petersburg (IBSP) has secured a €16.5 million trade-related syndicated term loan, with the deal initially set at €15 million but subsequently increased. This significant financial support comes from a group of leading European banks, including AKA Ausfuhrkredit and Banco Finantia as lead managers, and Kazkommertsbank, Commercial Bank Center-invest, Industry & Construction Bank, International Moscow Bank, Vnesheconombank, and ATF Bank as managers.
IBSP, established in 1989, is the 71st largest Russian bank by assets and the 7th largest credit financial institution in St. Petersburg. The bank's primary focus is corporate banking in northwestern Russia. The loan, with a tenor of 364 days and an extension option for an additional 364 days, carries a margin of 3.25% per year over Libor.
While the specific roles of Vneshtorgbank (VTB Bank) and Moscow Narodny Bank in this loan deal are not yet clear, both banks are known for their involvement in syndicated loans and international banking operations, respectively.
The loan comes amidst geopolitical tensions, with the European Union targeting Russia's shadow fleet as peace talks with Ukraine falter, and the US warning foreign regulators and banks against dealings with Russian subsidiaries. In addition, the US has placed banks in its crosshairs of an export control regime, and a new hub for ship-to-ship transfers of Russian oil has been established.
Despite these challenges, IBSP maintains a respectable credit rating. Fitch has given IBSP a B- rating, while Standard & Poor's has awarded a CCC+ rating with a stable outlook. However, the UK watchdogs have issued a warning to banks regarding the Russian oil network.
This syndicated loan marks a significant step forward for IBSP, providing much-needed financial support as it continues to navigate the complex and evolving geopolitical landscape.
The syndicated loan obtained by IBSP from a group of European banks demonstrates their commitment towards providing finance for trade-related activities. Despite geopolitical tensions, IBSP's creditworthiness persists, as evident by Fitch's B- rating and Standard & Poor's CCC+ rating with a stable outlook, despite warnings issued by UK watchdogs.
