The Hungarian subsidiary of Vienna-based Raiffeisen International Bank Holding AG (RI), Raiffeisen Bank Zrt., has borrowed EUR 325 million from a consortium of banks. The five-year syndicated loan will carry a minimum coupon rate of 0.20 per cent a year.
Raiffeisen Bank will use the facility, the banks first this year, for general funding purposes.
Initially, the bank contemplated a EUR 200 million loan, where underwriters and lead arrangers were Japans Bank of Tokyo-Mitsubishi UFJ Ltd., Germanys BayernLB and Frances BNP Paribas.
At a later stage, the borrowers team joined four Raiffeisen subsidiaries from the provinces of Upper Austria, Lower Austria-Vienna, Burgenland and Salzburg, alongside HSBC Bank Plc, Dexia Kommunalkredit Bank AG and Norddeutsche Landesbank Luxembourg.
Another 12 international banks joined in with lower borrowings to augment the total size of the loan facility to EUR 325 million.
Herbert Stepic, CEO of Raiffeisen International, said: "The conclusion of the deal underlines the positive sentiment of the international loan markets regarding Hungary. Above all, however, it underlines the excellent reputation and standing of Raiffeisen across Central and Eastern Europe."
Raiffeisen Bank set out operations back in 1987, thus becoming RIs first arm. The bank, licensed to perform the full range of commercial banking activities, is Hungarys sixth-largest bank with assets of EUR 5.1 billion as of June 30 this year.
The banks parent company, Raiffeisen International, runs at present banks and hire-purchasing companies in 16 countries in Central and Eastern Europe. Its combined branch network counts 2,700 outlets, which serves 11 million clients in total.
RI is 70-per-cent owned by Raiffeisen Zentralbank Österreich AG (RZB). The remaining stock is trading on the Vienna Stock Exchange and is in the hands of institutional and retail investors.