Emirates NBD, as the co-ordinating initial mandated lead arranger, has closed a syndicated loan of $313 million (Dh1.1 billion) for Uralsib Bank, the ninth largest bank by assets in Russia.

Bayerische Landesbank (Bayern LB), Credit Suisse, Emirates NBD, ING Wholesale Banking, and National Bank of Oman were the bookrunners of the syndication. The facility for Uralsib Bank has a tenor of 364 days and pays a margin of one percentage point over Libor.

Proceeds of the facility will be used by Uralsib to finance trade related contracts of its clients. The syndications was initiated at $150m and over subscribed by 108 per cent, closing at $31m.

Abdel Wahed Al Fahim, General Manager of Wholesale Banking at Emirates NBD, said that despite the volatility in the market, the response was encouraging.

"The arrangers of the syndicated loan financed 32 per cent, while 68 per cent came from the international credit market. Thirty two banks are participating in this syndication, which proves that the credit market is recovering."

Alexandar Demenitev, Deputy Chairman of Uralsib Bank, said geographical distribution of participating banks in the syndication also reflected potential strength of the credit market.

"Around 28 per cent of the loan was covered by Middle Eastern banks, four per cent by Asian banks and 68 per cent from European and United States banks."

He said the credit crunch led to high volatility in the credit market and also high potential opportunities.

"Uralsib Bank has an aggressive plan to increase its syndications from the global markets. Our credit in the international market represents only 18 per cent of the bank's liabilities so we have aggressive plans to expand in the international market."

Bankers attending the event also insisted that the quality of borrowers has become the main factor ruling the global credit market after the credit crisis. And for them, the quality of borrowers means their financial status and balance sheet as well as their deep understanding of the market trends, the purpose of loans and how they will pay back.

"It is a joint target between borrowers and banks. The borrower should ensure his understanding of changes in the markets and also be aware of the targets of his loan to ensure success. This will also lead to the success of banking operations in this volatile market," said Ulrich Mattonet, senior executive vice-president of Bayern LB.

Credit plan

Emirates NBD yesterday announced the launch of the credit card installment plan, which allows card holders to convert any retail purchases of more than Dh1,000 into an installment plan and settle it in easy and convenient monthly installments.

Suvo Sarkar, Emirates NBD General Manager for retail banking, said: "The plan is devised to offer our card holders a quick, easy and convenient solution to purchases."

Customers can choose the installment period of three, six, nine, 12, 24, and 36 months for the payment at a low interest rate of 0.80 per cent per month. The minimum transaction amount is Dh1,000 and customers must convert to the installment plan within 50 days of making the purchase.



Picture caption: From left Andrea Inancsi, Vice-President ING; Ulrich Mattonet, Senior Executive Vice-President, Global Head Financial Institutions/Head of Syndications, Bayern LB; Alexander Dementiev, Deputy Chairman of Uralsib Bank; Abdul Wahed Al Fahim, General Manager of Wholesale Banking at Emirates NBD; Mohamed Wajid Kamran, Global Head of Financial Institutions Division, Emirates NBD; and Baqer Taki Al Lawati, Assistant General Manager and Head of Financial Institutions at National Bank of Oman, at the press conference in Dubai yesterday.