Sberbank CIB
The Corporate and Investment Banking Business of Sberbank

Mezzanine Financing

Your goal:

to raise funds for a project if project financing is not available

Our solution:

mezzanine financing

Specific features of mezzanine financing:

  • enables to raise funds cheaper than on the equity capital market;
  • provides for leveraged financing of projects concurrently with acquisition of an option for the borrower’s shares;
  • the interest rate is higher than for a conventional bank loan due to equity risks;
  • the loan is provided for at least 3 to 5 years, with repayment on the principal at the end of the loan period.

BACKGROUND INFORMATION

A mezzanine loan may be used at financing of a new enterprise, addition to own funds for project financing as well as for acquisition of a stock of shares by means of borrowed funds.