Bank keen to tap liquidity in Gulf region.DUBAI: 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 $150mn after an oversubscription Oversubscription The excess number of shares or bonds that investors want to buy but are not available due to high demand. . "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 RZB Raiffeisen Zentralbank Österreich AG (Austria) RZB Rudolf Zimmermann Bamberg (German) 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 London Interbank Offered Rate A short-term interest rate often quoted as a 1,3,6-month rate for U.S.dollars. , 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 Deutsche Bank AG (IPA: /'dɔɪ.tʃə/[1]) (ISIN: DE0005140008, NYSE: DB) (English: German Bank , and Emirates NBD NBD Next Business Day NBD National Bank of Dubai (United Arab Emirates) NBD No Big Deal NBD Network Block Device (Linux) NBD Nucleotide Binding Domain NBD New Business Development . Bank of Moscow, controlled by the city government of the Russian capital, has total assets of 528bn roubles ($22.16bn), according to the bank. Copyright [c] 2008 Gulf Daily News Provided by Syndigate.info an Albawaba.com company |
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