Aizkraukles Banka completely repays last syndicated loan

July 2, 2009 / Banking

On June 29, 2009, Aizkraukles Banka (AB.LV) completely repaid the remaining syndicated loan of EUR 85 million. As early as at the beginning of May, the bank placed a deposit of EUR 50 million with DZ Bank AG — one of the syndicated loan arrangers.

Consequently, all the bank liabilities under the syndicated loan are discharged, and it is not planned to receive new syndicated loans. In February this year, AB.LV repaid the previous syndicated loan of EUR 70 million.

AB.LV signed the agreement on receiving a syndicated loan of EUR 85 million on July 8, 2008. Initial Mandated Lead Arrangers for the syndicated loan were: Bayern LB, DZ Bank, HSH Nordbank, and RZB. Following the provisions of this agreement, the loan was to be repaid on July 7 this year, but the bank management decided to repay the loan shortly before the term, since premature repayment of the loan allows saving on maintaining required reserves.

During the first 5 months of 2009, deposits attracted by Aizkraukles Banka have grown by 12.3%, amounting to LVL 796.9 million. Whereas the value of the loan portfolio continues to decrease. As of May 31, the bank capital and reserves equalled LVL 80.3 million.

JSC “Aizkraukles banka” is 100% owned by Latvian shareholders. The bank’s majority shareholders are Oleg Fil — 47.04% shares, Ernest Bernis and Nika Berne — 47.04% shares. The Aizkraukles Banka aim is to become the leading independent private bank in the Eastern Europe, combining all banking services, including asset management and advisory services, in a single customer-tailored offer. Aizkraukles Banka Group includes IPAS AB.LV Asset Management, IBAS AB.LV Capital Markets and other companies.

Additional information:
Ilmars Jargans
Aizkraukles Banka
+ 371 6777 5296