FIMBank plc, the Maltese-based trade finance bank, has successfully concluded its second Syndicated Term Loan Facility agreement for $60 million, with Standard Bank plc and San Paolo IMI SpA as the mandated lead arrangers.

A selected number of international banks and financial institutions will make available to FIMBank a US dollar term loan facility in an aggregate amount equal to the total commitments of $60 million. The transaction is for a duration of 12 months and the proceeds will be used to support the FIMBank Group global trade finance activities.

Following the success of last June’s $30 million syndicated loan agreement, 100 per cent over-subscribed from an initial launch amount of $15 million, FIMBank approached the Euroloan Market for the second time. Standard Bank and San Paolo IMI, recognising FIMBank’s rising profile in international markets, again took on the role of mandated lead arrangers and signed up prominent international banks to the facility on behalf of FIMBank.

The syndicate consists of an aggregate of 28 lenders from 22 countries and underlines the wide geographical range of institutions that are willing to provide funding to Malta’s FIMBank.

The transaction was vastly oversubscribed and reached $76.5 million, from an initial launch amount of $50 million. FIMBank, however, adopting a prudent approach, resolved to scale down the Syndicated Loan Facility to a final take of $60 million.

Nassif A. Chehab, head of financial institutions and responsible for coordinating the syndication at FIMBank, said that this success, and the prominent list of participants, is further proof that FIMBank has gained recognition from other international financial institutions. The fact that the syndication oversubscribed to $76.5 million is testimony to FIMBank’s credentials and its ability to access global markets.

FIMBank president Margrith Lutschg-Emmenegger was very pleased with the results, saying that this is a further milestone in the development of FIMBank and the results of the syndication is a manifestation of the confidence that the international banking community has vested in FIMBank and Malta.

All the lenders were invited to attend the signing ceremony in the presence of senior managers and directors of FIMBank, which was held on 12 June at Le Meridien, St Julian’s, followed by a lunch at the Villa, Le Meridien.