VNESHTORGBANK SEEKS INCREASE FOR FACILITY
Vneshtorgbank, the Soviet Foreign Trade
bank, is seeking an increase to 250 mln stg from the original
150 mln for a five year, sterling bankers' acceptance facility
arranged last autumn, Lloyds Merchant Bank Ltd said as
arranger.
    The facility has a 10 basis point facility fee and there is
a 15 basis point maximum cap on the margin.
    Banking sources said syndication for the increase was
proceeding very well so far, although the syndication would not
necessarily be confined to banks participating in the original
group.
    Banking sources said that one reason for the increase was
that Vneshtorgbank had been very impressed by the relatively
low cost of financing by means of eligible bills, rather than
through more traditional instruments priced in relation to
London Interbank Offered Rates (LIBOR).
    The facility is Vneshtorgbank's first ever
sterling-denominated bankers' acceptance facility.
    Banking sources noted that Vneshtorgbank now has two
facilities in the market, since First Chicago Ltd was awarded a
mandate last week to arrange a 200 mln dlr, eight year loan at
1/8 point over LIBOR.
 Reuter
