Sovcombank signs a USD 350 million Syndicated Facility with an ESG tranche to finance Halva "buy now pay later" (BNPL) platform

PJSC Sovcombank signed an agreement to borrow USD 350 million from a syndicate of banks. The loan has two tranches with maturities of 12 and 18 months. The Bank will use the funds to finance its foreign trade operations, its general corporate purposes and further growth of its portfolio of Halva BNPL platform.

The ESG loan met great interest on the part of foreign and Russian banks as well as development institutions. As a result of a considerable oversubscription, Sovcombank increased the loan amount from USD 200 million to USD 350 million.

The mandated lead arrangers and bookrunners were AO UniCredit Bank, Commerzbank AG (Filiale Luxemburg), HSBC Bank plc, ING BANK (EURASIA) AO, JSC Russian Regional Development Bank and PJSC ROSBANK. The Eurasian Development Bank and PJSC Bank ZENIT acted as Mandated Lead Arrangers, and Banca Intesa, Credit Suisse (Switzerland) Ltd. and the International Bank for Economic Co-operation acted as Lead Arrangers. ING Bank N.V. was the coordinator and Facility Agent, and HSBC Bank plc was the ESG coordinator.

Clifford Chance provided legal support to Sovcombank, and Allen & Overy acted as legal advisor for the lenders.

Dmitry Gusev, Sovcombank’s Board Chairman, said: “This is already the second syndicated loan that we have arranged with a group of international and Russian investors, but it is our first ESG facility. We are pleased that the loan’s social focus and Sovcombank’s high credit ratings and transparency attracted a large number of participants, which made it possible to increase the facility amount by 75 percent compared with the amount we had originally planned to borrow and to extend the tenor of the loan.”

Publication date: 11 January 2021