Parex banka successfully closed the largest syndicated loan taken by a Latvian institution. The Bank has borrowed EUR 188.5 million at a margin of 0.6% over EURIBOR, which is also one of the lowest ever margins for the Latvian private sector. The loan, originally subscribed in 2004, has now been extended, and the initial amount of facility was oversubscribed by almost three times.
This is Parex banka’s seventh syndicated loan. The facility will be used to ensure sufficient resources for expanding further the Bank’s share of retail and corporate business branch in Latvia, as well as for funding international leasing sector. 34 banks from 16 countries, namely, Netherlands, Japan, UK, Germany, USA, Taiwan, Austria, Greece, Italy, Belgium, Egypt, Finland, India, Iran, Poland and Portugal have committed to join the syndicated loan.

Gene Zolotarev, Global Head of Capital Markets and Investment Banking, commented: "Parex banka is the only institution from the Baltic region which has attracted such a great interest from international banks. We can be proud that the completion of this large transaction shows that international banks and financial institutions recognise the Bank as the prime pan-Baltic credit issuer".

Mr Adrian Walker, Head of Distribution Europe, Middle East & Africa of Standard Bank Plc, said: "On behalf of the Mandated Lead Arrangers, we are delighted with the success of this transaction. This facility, coupled with Parex banka's recent Eurobond, yet again demonstrates Parex's position as the leading Baltic banking group. Despite a reduction in pricing compared to Parex banka's previous transactions, the facility has been substantially increased to a broader base of investors – a clear statement of the regard in which Parex banka is held by its international partners".

Parex banka is one of the leading banks in the Baltic states offering integrated client services including lending, payment card services, leasing, asset management and securities brokerage. The Bank is represented in 16 countries through its network of representative offices, branches and subsidiaries, including a subsidiary in Switzerland, AP Anlage un Privatbank AG. The Bank intends to further broaden its international presence by adding new branches in Berlin and Stockholm that will be offering full operational services to corporate clients active in the Baltic region.

The leading position of Parex banka in Latvia has been noted by international acknowledgement from the magazine The Banker, which named Parex banka the Bank of the Year in 2004. This award is the third such award received from The Banker. Another international magazine, Euromoney, named Parex banka the Best Debt House in Latvia and Best Bank in Latvia, and Global Finance named Parex banka as the Best Foreign Exchange Bank in Latvia.

The bank is rated Ba1 by Moody's Investors Service, BB+ by Fitch Ratings and BBB- by Capital Intelligence.