Latvias Aizkraukles Banka to receive EUR 50 million syndicated loan

29. Juni 2006, 00:00

Latvias Aizkraukles Banka will receive EUR 50 million syndicated loan from foreign banks to be used for...

Latvias Aizkraukles Banka will receive EUR 50 million syndicated loan from foreign banks to be used for development of the banks core activities and increasing competitiveness, according to the agreement signed on Thursday.

The syndicated loan is organized by Germanys HSH Nordbank, Austrias Raiffeisen Zentralbank Osterreich with participation of 19 banks from 10 countries. The agreement is signed for one year with a possibility to extend it for another period. The loan is issued without a guarantee and the rate is EURIBOR plus 0.95 per cent.

Aizkraukles Banka said that initially the bank intended to borrow EUR 25 million, but the responsiveness of the potential lenders was bigger than expected and the bank decided to borrow EUR 50 million.

"Syndicated loan is a good chance for the bank to show itself as a loyal player in the international financial markets. The loan will foster the banks development and ability to strengthen its positions among the most successful commercial banks in Latvia," said Aizkraukles Banka board chairman and co-owner Ernests Bernis.

The bank said that this is the largest loan in the Baltic states attracted at first time by a bank without a foreign capital. Taking into account that lenders are from several countries, the deal ensures Aizkraukles Banka to expand cooperation with these banks, the bank said.

Other participants besides HSH Nordbank and Raiffeisen Zentralbank Osterreich are Hypo Alpe-Adria Bank International, LRP Landesbank Rheinland-Pfalz - Member of the LBBW Group, AKA Ausfuhrkredit-Gesellschaft, Bankgesellschaft Berlin, State Bank of India, Banif Banco Internacional do Funchal, Landsbanki Luxembourg, Oberbank, American Express Bank, Bank Sepah International, BRE Bank, Caixa Geral de Depositos, Landesbank Saar, National Bank of Egypt (UK), WGZ-Bank - Westdeutsche Genossenschafts-Zentralbank, and two Latvian banks -- Trasta Komercbanka and Latvijas Hipoteku un Zemes Banka.

Aizkraukles Banka is fully owned by Latvian businessmen and its largest owners are Bernis and Olegs Fils. The bank ranked seventh among 23 Latvian banks by assets at the end of May.

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