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13.11.07

LLC Lenta EUR 200 Million Syndicated Term Loan Facility

On Monday, 5 November 2007, LLC Lenta (Lenta), ABN AMRO Bank  N. V. (ABN AMRO), Commerzbank Aktiengesellschaft (Commerzbank), Raiffeisen Zentralbank Osterreich AG (RZB) and ZAO Raiffeisenbank Austria (RBRU) (RZB and RBRU together referred to as RZB Group) (together, the Mandated Lead Arrangers) successfully signed a syndicate of banks into a EUR 200 million Syndicated Term Loan Facility.

The transaction is Lenta's largest international syndicated loan to date. The loan is priced initially at a margin of 1.40% over EURIBOR or LIBOR, depending on the loan's currency. The margin may vary over the life of the loan depending on the debt level. Participation fees were 50bps (EUR 20mn), 35bps (EUR 10mn) and 25bps (EUR 5mn) respectively.

Lenta plans to use the facility to refinance its existing borrowing and support ongoing capital expenditure and strategic expansion of its hypermarket chain to the Russian regions.

The syndicate consists of the following lenders:

Mandated Lead Arrangers (MLAs)
ABN AMRO
Commerzbank Aktiengesellschaft
RZB Group

Lead Arrangers
BNP PARIBAS
Citi
ZAO CALYON RUSBANK
Banque Societe Generale Vostok

Co-Arrangers
Investkredit Bank AG
Caixa Geral de Depositos, S.A.
HSBC Bank plc
Raiffeisenlandesbank Oberesterreich AG 

Lead Manager
ZAO Banca Intesa

The roles of the MLAs:
ABN AMRO: bookrunner, facility agent, information memorandum
Commerzbank: bookrunner, documentation agent
RZB: bookrunner, publicity agent

The success of this transaction demonstrates the strong market appetite to invest in companies operating in the expanding Russian retail sector. Lenta is the largest retail chain in the North-West region of Russia, and the third largest in the country, operating through 22 hypermarkets in St. Petersburg, Astrakhan, Barnaul, Novosibirsk, Omsk, Togliatti, Tyumen, and Volgograd and employing over 8,800 staff. Retail sales for 2006 were USD1.02 billion.

Lenta was founded in 1993 and is headquartered in St. Petersburg, Russia. Lenta operates 22 hypermarkets and has 11 sites under construction. Thirteen of the existing retail complexes are in St. Petersburg, three in Novosibirsk and one each in Astrakhan, Barnaul, Omsk, Togliatti, Tyumen and Volgograd. Lenta is constructing twelve more stores in Krasnodar, Nizhny Novgorod, Novgorod, Novorossisk, Novosibirsk, Petrozavodsk, Rostov-on-Don, Ryazan, and St. Petersburg. By adapting best practices from abroad, the company has pioneered the culture of retail and wholesale in Russia. Lentas ambition is to be the price leader on the market, by providing its customers with more options at lower prices. Retail sales in 2006 were $1.02 billion. To learn more about Lenta please visit http://www.lenta.com/.

Raiffeisenbank is recognized as a leader on the Russian corporate bond market. In 2001-2007 Raiffeisenbank acted as a lead manager or co-manager for 126 corporate bond issues with a total nominal value of RUR 392 billion.

ZAO Raiffeisenbank Austria is ranked 7th in terms of assets among top Russian banks based on Q3 2007 results (Interfax-). At present the bank disposes of 34 branches in Moscow, 6 branches in Saint Petersburg and regional branches in Ekaterinburg, Samara, Novosibirsk, Chelyabinsk, Nizhny Novgorod, Krasnodar, Krasnoyarsk, Perm and Tyumen, representative office and credit cash office in Ufa. Raiffeisenbank is ranked 7th in terms of corporate lending based on Q3 2007 results (Interfax-).

ZAO Raiffeisenbank Austria is a subsidiary of Raiffeisen International Bank-Holding AG, which operates the largest banking network in CEE. 18 markets of Europes growth region are covered by subsidiary banks, finance leasing companies, two representative offices and a number of other financial service providers. Over 13 million customers are attended to through more than 3,000 business outlets. Raiffeisen International is a fully consolidated subsidiary of Raiffeisen Zentralbank Osterreich AG (RZB), which owns 68.5 per cent of the common stock. The balance per cent is free float, the shares are traded on the Vienna Stock Exchange. RZB is a leading corporate and investment bank in Austria and the central institution of the Austrian Raiffeisen Banking Group, the countrys largest banking group.

 

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