Sberbank CIB
The Corporate and Investment Banking Business of Sberbank

Mezzanine Lending

Your goal:

To raise funds for a project when project financing is unavailable

Our solution:

A mezzanine loan is a loan with higher risks that involves the subordination of a mezzanine tranche in relation to other loans

Specific features of mezzanine lending:

  • Cheaper than attracting funds on the equity capital market
  • Involves debt financing of projects with the simultaneous purchasing of the company’s stock option
  • Mezzanine loans have the status of junior debt and are subordinate to other loans
  • Interest rates are higher compared to traditional bank loans due to the subordinate nature of mezzanine loans
  • Financing is provided for up to 10 years with the return of funds at the end of the term