Vnesheconombank attracts CNY 10bn from Chinese banks

During the second Eastern Economic Forum in Vladivostok, Vnesheconombank and a club of Chinese commercial banks signed a syndicated loan facility agreement for up to CNY 10bn.

For Vnesheconombank, the document was signed by Chairman Sergey Gorkov, for Harbin Bank – Chairman of the Board Guo Zhiwen.

A three-year syndicated loan is to be raised from a pool of Chinese commercial banks with an extension option for a further three-year period. Ten banks (Harbin Bank, Baoshang Bank, Bank of Zhengzhou, Harbin Bank Financial Leasing, Bank of Fuxin, Bank of Ganzhou, Bank of Jiujiang, Bank of Weifang, New China Trust, Bank of Chaoyang) participate in the deal with Harbin Bank acting as the Coordinator and the Agency Bank.

Vnesheconombank and Harbin Bank have agreed that the loan proceeds will not be strictly tied to any particular investment projects. Consequently, the funds raised may be channeled to finance a wide range of Vnesheconombank’s investment and export projects, in particular, ambitious projects of the Russian-Chinese trade and economic cooperation.

Vnesheconombank’s Chairman Sergey Gorkov views Vnesheconombank’s raising untied financing from Chinese commercial banks as a significant milestone in a strategy designed to build up and foster business relationships between Chinese financial institutions and Russian banks. The deal highlights the fact that the Russian banking system has got one more foreign source of medium-term untied financing in one of the world’s reserve currencies.

Press Office