RLPC-Russian banks face less liquidity, higher pricing on loans

By Christopher Mangham

LONDON, Jan 31 (Reuters) - Russian bank borrowers are asking international banks for new loan proposals but face a less liquid and more expensive bank market due to the growing financial crisis, banking sources said.

International banks' lending limits are constrained for Russian bank borrowers this year due to mounting claims on banks' limited capital bases and increased funding costs.

Many Russian bank borrowers secured three or four international loans each in 2007, which need to be refinanced, but arrangers are warning they may only be able to secure one or two deals this year.

In 2007, borrowers such as Bank Uralsib, Credit Bank of Moscow, MDM Bank, Promsvyazbank and RosEvroBank secured three or four loans each, while a further 10 banks agreed two deals each, according to data from Loan Pricing Corp.

Earlier this month, RZB Group-owned ZAO Raiffeisenbank Austria, Moscow surprised lenders by asking banks for proposals for a $700 million loan, which would be the borrower's biggest-ever loan.

"Deals need to be priced right, and amounts need to be conservative," a banker said.

Concerns have been prompted by the fact that other members of the RZB Group are frequent borrowers, which could strain lending limits to the group.

Earlier this month, Raiffeisen Bank Hungary signed a 190 million euro ($282.5 million) term loan.