Today's LIBOR Rates
1 M |
0.31563 |
 |
3 M |
0.47500 |
|
6 M |
0.68794 |
|
1 YR |
1.06438 |
|
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Bank of Moscow Initiates LIBOR-Based Loan |
December 19, 2009
According to Reuters, Bank of Moscow, one of Russia’s largest banks, has initiated a $350 million loan with interest based on LIBOR, the London Interbank Offered Rate. LIBOR is a filtered average of rates that banks charge each other on unsecured, short-term loans.
The new Bank of Moscow loan amount was raised from $230 million due to oversubscription. Lead institutions on the LIBOR-based loan include Barclays Capital, Calyon, Credit Suisse, Goldman Sachs, ING and WestLB. Interest on the new loan will be LIBOR plus 320 basis points. This represents a significant increase in cost of funds over Bank of Moscow’s 2008 loan at LIBOR plus 150 basis points. Per the Reuters account, Bank of Moscow will use its new LIBOR-based loan for working capital, trade-related actions, and general funding.