Bank of Moscow to tap GCC liquidity
Dubai, May 14, 2008
Bank of Moscow, which plans to raise as much as $2 billion this year, said yesterday it may tap liquidity in the Gulf region after signing its first loan deal in the Middle East.
The bank, the fourth-biggest lender in Russia by assets, said it had signed a $220 million, 18-month loan, which was increased from $150 million after an oversubscription.
"This transaction is a new one for us," the bank's executive vice-president Pavel Gorbatsevich said.
"We intended to establish new business contacts (in the Middle East)."
"Russian banking institutions and communities are hungry for funding, with the Middle East being a liquid area driven by the petro dollar," said RZB vice-president Zaid Maleh.
The loan will be used for general corporate funding needs, and pays a margin of 65 basis points over London interbank offered rate, the bank said.
"I expect this year it (borrowing) will come to $1.5 to $2 billion," Gorbatsevich said, when asked how much the bank expected to raise in 2008.
Other banks arranging the loan were ABN-Amro, Deutsche Bank, and Emirates NBD.
Bank of Moscow, controlled by the city government of the Russian capital, has total assets of 528bn roubles ($22.16 billion), according to the bank.
More Finance & Capital Market Stories
- Egypt regulator sets rules for index
- Dubai Islamic eyes Kenya, Indonesia for expansion
- ADCB to buy back 3pc of its shares
- GCC insurance growth outpaces developed markets
- Bahrain 'faces budget deficit, inflation challenges'
- Global Payment Services wins key certification
- BBK unveils big India expansion plans
- Kuwait GDP growth to hit 3.5pc in 2014
- Gulf shares tumble over EM exposure cut
- GCC bonds to gain from macro-economic climate
- French Business Council Dubai members up 18pc
- Egypt economy growth seen less strong than thought
- Sharjah approves $4.2bn budget for 2014
- Saudi non-oil sector posts solid growth in Feb
- Seera total income rises to $34m
- NBAD approves 40pc cash dividends
- NBAD sees 8-10pc loan growth
- Al Basel Group launches investment arm
- Union Insurance posts $18m profit
- Oman warns banks on conflicts of interest
- Japan to lend Tunisia $480m
- 400 to join anti-laundering seminar in Riyadh
- Lebanese insurer to head Prague Club
- UAE's first REIT plans $135m IPO
- Bahrain banking industry outlook 'positive'
- New India Assurance opens Bahrain branch
- Qatar sets up mixed business incubator
- Kuwait budget spending up 8pc in April-Jan
- Thomson Reuters to host Mena IFR awards
- ADIB offers smartphone industry investment