LONDON, July 9 Russia's Gazprombank has approached lenders to provide a one-year syndicated loan totalling up to $1 billion that will refinance a $1.2 billion loan maturing in September, banking sources said.
The loan is expected to carry a margin of around 175 basis points (bps) over LIBOR, with terms similar to those Russia's second-biggest bank VTB is seeking on its latest circa US$1.5 billion loan that is in the market, one of the bankers said.
"The pricing on VTB's deal is an appropriate balance for the lenders and the borrower. Gazprombank will look for pricing at around the same level," the banker said.
Banks are expected to submit their commitments within the next two weeks, the bankers said.
Gazprombank was not immediately available for comment.
Gazprombank's last loan was agreed in October 2013. That $500 million three-year club loan was co-ordinated by Barclays and Bank of Tokyo-Mitsubishi UFJ and paid a margin of 140 bps plus fees, equating to all-in pricing of 175 bps.
Gazprombank is rated BBB- by Standard & Poor's and Baa3 by Moody's. (Editing by Christopher Mangham)