EBRD to invest in Promsvyazbank

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24 November 2009

The EBRD looks set to make its largest investment to date in the Russian banking sector.

The European Bank for Reconstruction and Development (EBRD) has announced its intention to acquire a minority equity stake of 11.75% in Promsvyazbank (PSB), Russia’s third largest locally-owned private bank, and plans to pay RUB4.6 billion ($159 million) to subscribe to a recent issue of ordinary voting shares.

According to Nick Tesseyman,...

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Poll

Gazpromneft stunned the market this week when it was revealed pricing for their five-year $1 billion pre-export financing was rumoured to be just above 300 basis points over Libor. Is the deal likely to be a syndication success?

Yes - this seems like a sensible pricing benchmark, why not?

10%

No - are you crazy? These prices are ridiculous. What were these banks thinking?

29%

Yes - but for all the wrong reasons. A lack of other deals in the market, and the promise of future business with Gazpromneft will make it hard to ignore but don’t expect many to take up big tickets with this deal. There are much better deals out there.

62%