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news Tel: +44 (0) 845 165 1560 Fax: +44 (0) 845 165 1561 continued from page 5


venture with JC Flowers will mark the beginning of an important new chapter in the history of the Society and will give us a strengthened capital base”.


David Morgan, managing director Europe


and Asia Pacific, JC Flowers & Co, said: “We look forward to joining forces with KRBS. The injection of new capital will make the business stronger and able to take advantage of opportunities as they arise.”


Dexia sells its subsidiary Dexia banka Slovensko to Penta


DEXIA has reached an agreement with the Central European investment group Penta Investments, on the sale of its 88.71% stake in Dexia banka Slovensko. The transaction is part of the agreement with the European Commission reached in February 2010 that provides for the disposal of Dexia banka Slovensko by Dexia before 31 October 2012. The final impact of the transaction on Dexia’s accounts is expected to be positive and, due to the ongoing appeal procedure on the Regional Court of Bratislava in relation with Ritro Finance, will be assessed at the latest at the time of completion. The share purchase agreement has been signed on standard terms and is subject to the approval of the National Bank of Slovakia and the Antimonopoly Office of the Slovak Republic. This transaction is expected to be completed during the first quarter 2011.


White & Case advises on US$900m refinancing of


Russian energy group GLOBAL law firm White & Case LLP has advised En+ Group Limited with regards to its US$900m refinancing, following a US$1bn restructuring earlier this year. The initial restructuring proposal involved more than 30 banks and with U$1.33bn of total debt to be restructured. Under the terms of the restructuring the loan deadline was extended until the end of 2013.


6 November/December 2010


White & Case LLP advised En+ Group Limited on secured refinancing by VTB Capital plc — the agent, security trustee and original lender — of an existing loan to En+ Group Limited in the amount of up to US$900m. The refinancing facility agreement was signed on 29 October, 2010 and deal closed on 3 November 2010. En+ Group Limited is a Russia-based diversified mining, metals and energy group. En+ Group holds a significant stake in the world’s largest alumina and aluminium producer UC RUSAL, and 100% owns EuroSibEnergo plc (one of the world’s largest hydro generation companies and largest Russian independent power producers) and SMR (one of the world’s largest ferromolybdenum producers). The White & Case team included London


partner Chris Utting, lead associate Natalya Bremen, as well as Clare Kimber.


Baltic Rim outlook: growth is back


AFTER some tough years for the Baltics, Poland and Russia the crisis is now over, at least in terms of growth, which is back. Estonia’s nearby membership of the Euro club highlights that a new era has begun for the Baltic countries. Exports have been the key element in the


early part of the recoveries in the region, while the development of the domestic economies varies significantly. Poland is clearly in the lead, with Russia gaining pace and the Baltics still struggling to get domestic demand to pick up. In Estonia exports have been the main driver of the recovery. Although the labour markets have started to improve, consumption is still fragile. The euro adoption is expected to boost confidence in the economy both at home and abroad, strengthening the recovery. Whereas public finances are at sustainable levels, the economy has other challenges to overcome, such as accelerating inflation and high long-term unemployment.


In Latvia focus is on fiscal consolidation. The budget deficit should be cut below 6% of GDP in 2011 – a challenge from 10.2% in 2009. However, a gradual recovery is clearly seen in the economy, although the domestic economy is showing little sign of an upturn. The outcome of the recent elections was good news for the


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markets, but credibility needs to be upheld to ensure favourable conditions on the local financial markets.


Lithuanian GDP still has a long way up to pre-crisis levels, and for this also a recovery in domestic demand is needed. Although growth this year is seen lacklustre, acceleration is expected in 2011. However, a slowdown in export demand could keep the economy weak for a longer time. Budget cuts will also be needed, with preferably some structural reforms implemented. Stable government finances are necessary for sustainable growth. Growth in Russia is seen slowing in the second half of the year, indicating that growth for 2010 as a whole will undershoot previous forecasts. Especially the agricultural sector which has stagnated due to the summer drought. Although inflation has accelerated, we do not foresee double-digit figures over our forecasting horizon. The budget deficit will remain fairly large despite for example rising oil prices and privatisation plans. The Polish economy continues to pick up speed after the global crisis. However, the economy is expected to start losing momentum late this year and in the first half of next year. Fiscal policy is the key domestic concern at the moment, especially since general elections are due next year. A lot of focus is currently on the central bank, as the first interest rate hike is near.


GE arranges $150m debt facility for Texas oil


and gas GE Energy Financial Services, a unit of GE has served as lead arranger of a $150m senior secured credit facility to enable a private oil and gas exploration company to develop oil and gas wells in east Texas.


A subsidiary of Austin-based Border to Border Exploration llc will use the proceeds to develop acreage across the Austin Chalk Trend in Tyler, Polk and Jasper counties. “The financing that GE Energy Financial Services is providing will help us accelerate our drilling program, employing operational innovations acquired while drilling over the past three years,”


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