Promsvyazbank, which is ranked by the Central Bank among Russia's top 30 banks, said the deal was structured as an issue of loan participation notes by PSB Finance S.A., its Luxemburg-based special-purpose vehicle, to fund the loan, which will mature in 69 months.
The loan participation notes were issued under Regulation S, which relates to offers and sales made outside the U.S. without the registration of the U.S. Securities and Exchange Commission, Promsvyazbank said.
Under the deal, Promsvyazbank has the right to remarket the notes nine months after their placement. This means Promsvyazbank has the option to transform its private offering into a public Eurobond deal and expand the volume of borrowing.
"This is the first debt offering of its kind by a Russian issuer. The deal was approved by the Bank of Russia," Promsvyazbank said.
Promsvyazbank, with assets of 130.8 billion rubles (about $4.8 billion) and its shareholders' equity of 13.8 billion rubles (about $511 million) as of July 1, 2006, said the funds raised would be used to support its fast-growing assets segment through an increase in corporate and retail lending.
