The Ural-Siberian Bank (Uralsib) has authorized one of the leading European banks, Raiffeisenbank (Austria), to organize a syndicated loan of $20m. The Uralsib Press Service reported that the initial term of the loan would be 364 days with one-time repayment at the end of the term. At the same time creditors will be able to prolong the term of the loan by another 364 days on individual basis at the debtor's request. The interest rate for the loan will be LIBOR + 3.5%. At the end of June the bank reported that it had signed a framework credit agreement with the BHF bank of the ING Group, which provided for financing of supplies of German equipment to Russia, totaling about $20m.
As it was reported earlier, a decision was made at the annual meeting of shareholders in Uralsib on June 28 of this year to increase the bank's authorized capital by RUR1.4bn ($44.43m) to RUR5.7bn ($180.89m) by means of the ninth issue of shares. The bank's equity amounted to RUR6.54bn ($207.55m) as of January 1 of this year.
The choice of the city of Helsinki is not incidental as the capital of Finland had hosted US-Soviet negotiations on the limitation of nuclear stockpiles in 1969