Today Parex banka has successfully closed the Syndicated Term Loan Facility of EUR 500 million, at a margin of 0.45% over EURIBOR, with a maturity date after two years. This facility sets a new record for syndicated loans in the Baltic States, reaching the amount of EUR 500 mln. Commerzbank AG, HSBC Bank plc., Intesa SanPaolo S.p.A., Lloyds TSB Bank plc., Mizuho Corporate Bank, Ltd. and Raiffeisen Zentralbank Österreich AG were the initial mandated lead arrangers of the transaction. The first syndicated loan of Parex banka to be closed with a two-year maturity, the transaction has attracted great interest from 36 financial institutions from 16 countries and was substantially oversubscribed. 84% or EUR 422 million of the funds raised came from European and North American investors, while 16% or EUR 78 million have been generated from the Asian investors. Five investors participated in the syndicated loan for the very first time, contributing EUR 58.5 million. Mr. Gene Zolotarev, Board Member, Senior Vice President, Global Head of Capital Markets and Investment Banking, commented: "Parex banka has a long standing and successful track record in raising capital through syndicated lending. We are proud to be the first Latvian private bank to enter this market and are delighted to once again set the market benchmark with this record-breaking amount of EUR 500 million as the largest debt capital markets transaction for any Baltic borrower." Mr. Simon Penniston, Managing Director, Debt Capital Markets, Lloyds TSB, said: "The success of this syndication is a testament to the strength, performance and popularity of Parex banka amongst the international bank investor community. With this EUR 500 million syndicated term loan Parex banka has once again raised the bar for Latvian and Baltic borrowers". This transaction serves to refinance the syndicated loan of EUR 310 million, which matures in July 2007. The remaining funds will be used for general business purposes. Parex banka entered the international syndicated lending market in 1998, raising USD 20 million. Since 1999 the Bank has been continuing to extend the range of its successful syndicated lending transactions, with the volume of funds attracted steadily increasing and margin rates falling, thus reflecting the confidence of the international financial community in Parex banka. List of the participating banks: Initial Mandated Lead Arrangers COMMERZBANK Aktiengesellschaft HSBC Bank plc Intesa Sanpaolo SpA Lloyds TSB Bank plc MIZUHO CORPORATE BANK, LTD. Raiffeisen Zentralbank Österreich Aktiengesellschaft Mandated Lead Arrangers DZ BANK AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main Bayerische Landesbank Deutsche Bank AG, London Branch ICICI Bank Limited Hong Kong Branch Landesbank Baden-Württemberg Landesbank Berlin AG LRP Landesbank Rheinland-Pfalz Natixis Sumitomo Mitsui Banking Corporation Europe Limited Lead Arrangers BAWAG P.S.K. Bank für Arbeit und Wirtschaft und Österreichische Postsparkasse Aktiengesellschaft JPMorgan Arrangers Alpha Bank A.E. Dresdner Bank AG, Niederlassung Luxemburg MKB Bank Zrt. Caja de Ahorres y Monte de Piedad de Madrid Lead Managers AKA Ausfuhrkredit-Gesellschaft mbH, Frankfurt (Main) Landsbanki Islands WGZ BANK AG Westdeutsche Genossenschafts-Zentralbank Managers BRED Banque Populaire Erste Bank der oesterreichischen Sparkassen AG First Commercial Bank Ltd., London Branch Landesbank Saar Oberbank AG Raiffeisenlandesbank Niederoesterreich-Wien AG Sparebanken Ost UniCredito Italiano Caixa Geral de Depòsitos, SA Magyar Takarékszövetkezeti Bank Zrt. The Export-Import Bank of the Republic of China Hua Nan Commercial Bank Ltd., London Branch About the Bank: With EUR 3.6 billion in assets, Parex banka is one of the leading banks in the Baltic States, offering integrated client services, including lending, payment card services, leasing, asset management and securities brokerage. The Bank is represented in 15 countries through its wide network of representative offices, branches and subsidiaries, including a subsidiary in Switzerland, AP Anlage und Privatbank AG. Parex banka is rated Baa3 by Moody's Investors Service, BB+ by Fitch Ratings and BBB by Capital Intelligence. Additional information: Julia Kondratovich Deputy Head of International Communications Department Phone: +371 777 8572 E-mail: [email protected]