Uzbek Agrobank attracts its first syndicated loan
BAKU, Azerbaijan, Dec. 13
By Fakhri Vakilov-Trend:
Uzbekistan’s Agrobank has attracted its first syndicated loan to the international market in the amount of 60 million euros and $13.5 million, Trend reports citing Uzbek media.
These loans are provided for general corporate purposes and for financing trade agreements of Agrobank customers.
In this process, the leading organizers of the transaction are two large banks of Russia - Transcapitalbank and Promsvyazbank. In addition, Uralsib Bank (Russia), Altynbank (a subsidiary of China CITIC Bank Corporation Limited), Novikombank (Russia), the All-Russian Regional Development Bank, Belarusbank (Belarus) and the International Bank of Azerbaijan also took part in the agreement.
This loan is the first syndicated loan in the activities of Agrobank, prepared with assistance of Russian banks under the laws of Russia.
Syndicated loans are loans that are provided by a group of banks under one loan agreement, which allows distributing between them the amount of the loan and the risks associated with its provision.
Syndicated lending allows resolving the contradiction between the borrower's needs for large credit resources and the impossibility of providing them separately by a bank. This may be due to limited resources, the discrepancy between the timing of their stay in the bank's circulation and the term of the required loan and the bank's presence of restrictions on the risk of investments in one borrower.
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