TRANSKAPITALBANK (TKB) participated in the syndicated loan transaction for Belarusbank amounting to EUR151mln as a mandated lead arranger (MLA).
The deal is structured as a dual tranche loan with 1,5 / 2 years tenor extended for general corporate purposes and financing of the trade contracts of the Belarusbank customers.
Alfa Bank, Eurasian Development Bank and AKBARS Bank also joined this deal as the MLAs.
11 financial institutions from Russia, Kazakhstan and Azerbaidzhan, including: Rosselkhozbank, Sovcombank, Novikombank, Russian Regional Development Bank, Bank National Standard, URALSIB, Altyn Bank (the subsidiary of China CITIC Bank Corp.), Alef-Bank and the International Bank of Azerbaidzhan participated in the transaction together with the MLAs.
TRANSKAPITALBANK (TKB)’s special purpose vehicle SFE TKB SME 1 LLC (the Issuer) placed an ABS notes amounting to RUB5,0bln on the Moscow Exchange. The SME Bank acted as the Lead Manager and an anchor investor for this deal. The notes issued within this ABS deal are collateralized by TKB’s SME loan portfolio for the amount of RUB6,85bln. The expected duration of the bonds is more than 3-years. The coupon rate is fixed at 9,25% p.a.
Russian rating agency ACRA assigned AAA(ru.sf) rating to the senior tranche of these notes. This is the 1st SME ABS transaction in Russia bearing ACRA’s credit rating.
The structure of the deal propose that new loans may be included into the securitized portfolio in replacement of repaid loans within two years after the issue of the notes, subject to certain terms and conditions (so this transaction is a dynamic asset backed securitization). Loan receivables acquired by the Issuer will form part of the collateral for the notes. The main source of payments on the rated note will be repayments from the underlying borrowers.
The SME Bank’s CEO Dmitry Golovanov commented the following: «This kind of transactions is a good opportunity for the SME Bank to expand the volumes of SME lending by our partner banks thanks to not only preferential funding conditions, but also to the market investors. The new uniform standards for SME lending as well as the uniform rules for asset-backed securitizations recently adopted by the Central Bank of Russia, created the basement for broad utilization of the new refinancing instruments for SME borrowers. We shall proceed to move further within this business line and arrange ABS transactions for certain banks, including multi-origination platform for medium, small and primarily regional financial institutions».
«The demand for our bonds we noted on the market and the level of the assigned rating both confirm high quality of the TKB’s SME loan portfolio. The Bank is on firm ground in this business segment and is going to further develop SME lending. Among the important factors of our success we see our capability to be quick in business decisions and our skills for realization of non-typical SME projects. TKB has plans to continue with ABS transactions in different areas» - Evgeni Ivanovski, TKB Deputy CEO commented.
The Group’s assets stand at RUB 260.2 bln. Total equity increased from RUB 20.1 bln on the beginning of 2018 to RUB 22 bln on the reporting date.
Net interest income reached RUB 3.9 bln. Net fee and commission income increased up to RUB 1.2 bln. Customer accounts stand at RUB 145.9 bln over RUB 142.5 bln as of the beginning of 2018.
Loans and advances to customers are in excess of RUB 134.9 bln less provisions. The main part of the credit portfolio represents loans to corporate clients in the amount of RUB 85.4 bln. The volume of the loans to individuals reached more than RUB 49.5 bln and composed mostly of mortgages.
TRANSKAPITALBANK (TKB) successfully arranged financing of electric power storages, manufactured by TOO “Kainar-AKB” from Kazakhstan into Russia.
The financing was granted in Russian Roubles by “KazakhExport” Export Insurance Company JSC under the letter of credit, issued by TKB and confirmed by Sberbank Kazakhstan.
Cooperation with KazakhExport enables TKB to provide its customers entering into cross-border trade transactions with their Kazakh counterparties with competitive terms for import LC financing within the existing national export facilitation programmes promoted by the above mentioned ECA.
KazakhExport is the only specialized insurance company which is the Republic of Kazakhstan development institution carrying out the functions of an export-credit agency. The functions of KazakhExport were stipulated in YY 2010-2014 State Program for Accelerated Industrial-innovative Development of Kazakhstan so that to establish adequate financial mechanisms to support the export of Kazakhstan manufacturing sector products to foreign markets.
KazakhExport provides export manufacturing sector enterprises and second-tier banks with insurance protection against the risk of non-payment in their foreign trade operations, and ensures the safety of export transactions.
TRANSKAPITALBANK entered the list of 50 major financial companies in Russia and the Bank is also ranked 363rd among RosBusinessConsulting’s (RBC) TOP500 Russian companies league table.
RBC ranked financial companies by their income / revenues volume. Banks were rated in accordance with the size of their fee and interest income including revenues from nonbanking activities. The cumulative metric for TKB calculated by RBC amounted to RUB28bln.
In terms of the number of participants – trading (53 companies), financial (51 companies) and oil & gas (49 companies) sectors leaded the TOP500 companies ranking this year.