RLPC-Russia's Raiffeisenbank increases loan to $1 bln-banker

LONDON, April 17 (Reuters) - Russia's ZAO Raiffeisenbank, owned by Austrian bank Raiffeisen International RIBH.VI, has increased its two-year syndicated term loan to $1 billion from $850 million, a banking source said on Thursday.

The loan, which is the borrower's biggest to date, will sign on April 30, the banker added.

The $850 million loan was raised by 11 initial mandated lead arrangers, with the intention that any commitments received in a wider syndication would be used to increase the facility amount.

Bigger mandated lead arranger groups reduce the amount needed to raise in syndication and reduce lenders' risk.

As well as the deal being primarily syndicated at the top level, the borrower is paying extra pricing to reflect the credit crisis.

The margin is 65 basis points (bps) over LIBOR, compared with the margin of 35 bps the borrower paid for its previous $625 million, three-year syndicated loan signed in December 2006.

Proceeds will be used for general corporate funding including trade related finance.

Initial mandated lead arrangers and bookrunners are Bank of Tokyo-Mitsubishi UFJ, Barclays, BayernLB, Citigroup, Deutsche Bank, Intesa Sanpaolo, Landesbank Baden-Wurttemberg, Mizuho, Wachovia, Unicredit Group and WestLB. Facility agent is Bank of Tokyo-Mitsubishi UFJ. (Reporting by Christopher Mangham; Editing by Quentin Bryar)