On November 2, 2006, the Nizhni Novgorod NBD BANK signed an agreement on a syndicated, R300-million loan. RAIFFEISENBANK AUSTRIA was the lead manager. Under the terms of the agreement, a twelve-month loan may be renewed for a further 12 months. The annual interest rate is set at 11%. During syndication, the loan was increased by 50%. However, the borrower kept the credit amount at the original level. NBD BANK plans to get the funds at once and in full and use them to on-lend to regional small and mid-sized businesses. The bank has the first experience drawing funds from commercial banks on the Russian syndicated lending market.
Source: RAIFFEISENBANK AUSTRIA BANK PRESS CENTRE, November 3, 2006
