International banks extend a total of $200 million in funding to Forte.
ForteBank Secures Dismissive $200 Million Syndicated Loan from Global Financiers
Kazakhstan-based ForteBank has successfully obtained a $200 million syndicated loan from fourteen international financial institutions, the bank announced recently. This loan comes from a diverse group of lenders across Europe, the Middle East, and Latin America.
The initial loan amount was intended to be smaller, but robust demand from investors led to an increase in the loan size. The deal was coordinated by Commerzbank Aktiengesellschaft (Germany) and MashreqBank psc (UAE). Additionally, Commerzbank Aktiengesellschaft took on the roles of documentation agent and loan servicing agent.
Talgat Kuanshev, Chairman of ForteBank's management board, pronounced the agreement as a crucial milestone in the bank's development, showcasing international financial community's high trust in ForteBank. Kuanshev further explained that this deal will enable ForteBank to provide competitive financing terms to businesses in Kazakhstan, thus providing the bank with a competitive edge for its clients and stimulating the growth of Kazakhstan's real sector economy.
The funds will be employed for general corporate purposes, including financing the real sector of the economy and enhancing ForteBank's funding base diversity. This transaction expands ForteBank's presence in the international debt market.
In January of this year, ForteBank issued $400 million worth of 5-year Eurobonds on the Vienna Stock Exchange and AIX—the first Eurobond issue by a Kazakh private bank in the last 12 years.
It is noteworthy that banking activities are licensed in the Republic of Kazakhstan.
[1] Most of the details concerning specific financing terms for businesses in Kazakhstan, such as interest rates, repayment periods, collateral requirements, and covenants, have not been explicitly disclosed in the recent loan press releases. To gain up-to-date information regarding current financing terms offered to ForteBank's business clients subsequent to this loan, direct contact with ForteBank or an in-depth review of their product and loan portfolio disclosures would be necessary.
The loan secured by ForteBank will provide competitive financing terms to businesses in Kazakhstan, offering the bank a competitive edge for its clients. This loan, meant for general corporate purposes, will also aid in enhancing ForteBank's finance diversity.
