Banks recognise the Home Credit Finance's growth and oversubscribed revolving loan facility by nearly a billion CZK

08/18/2005

HCF's dynamic growth has attracted strong interest of the banks to finance the company's future expansion. The revolving loan facility was oversubscribed by 27%. "The banks were ready to provide financing worth as much as CZK 3.8 billion. The large interest from the banks proves how attractive an opportunity they see in financing Home Credit Finance," Mr. Robert Potáč, Vice Chairman of HCF's Board of Directors and Managing Director of PPF Global Markets, comments on the deal. PPF Global Markets organised the transaction for Home Credit Finance a. s.

The CZK 3 billion secured committed revolving loan facility will be used for funding one-off consumer loans that HCF issues to its clients in the Czech Republic. Ms Alena Mudríková, Head of Loan Syndication at PPF Global Markets, comments on the conditions of the deal: "HCF will use the credit line for four years and the interest rate is set at PRIBOR plus 95 bps. HCF will draw the credit line in several tranches, each worth at least CZK 100 million. This will help the company to efficiently control its liquidity," adding that HCF would most likely draw the first tranche as early as in late August.

ING Bank N.V. and ABN AMRO Bank N.V. were mandated as leading arrangers of the transaction. Other four banks, including BAWAG Bank, CALYON Bank, COMMERZBANK, and HVB Bank, participated in the transaction.

08/18/2005