UralTransBank unlikely to get syndicated loan, Accord Invest claims

24 September 2008 (07:53)

‘The global stock markets are closed for the Russian issuers’ stock or syndicated loan coordinators at the moment. The only exception to the rule is the large banking consortiums, so getting a syndicated loan this year is extremely complicated, if not altogether impossible,’ claims Accord Invest Investment and Finance Company’s Deputy GD Konstantin Selyanin.

Meanwhile, UralTransBank’s Chairman Valeriy Zavodov said in the course of several interviews that the bank intended to get a syndicated loan on the international capital market in February or March 2009. Zavodov explained the company was interested in a three-year loan worth 1 billion RUR at least and needed it to improve UralTransBank’s rating.

‘As a matter of fact, I don’t believe things will get any better by next spring. The global financial crisis is likely to keep unfolding, and the general situation may become even graver. UralTransBank happens to be a medium-sized provincial bank, so in case syndicated loans become unavailable for this type of banks, UralTransBank will be no exception. Even if, contrary to all probability, someone agrees to offer them a loan, the terms will most likely be very unappealing to the bank,’ Selyanin notes.

‘Besides, which of the world’s syndicated loans-giving banks will actually live through the crisis and make it to the next spring still remains to be seen,’ the expert adds.

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