Otkritie Bank — pilot mezzanine financing in the construction sector
LECAP acted as legal advisor to Otkritie Bank and the investment and construction holding AAG in connection with the provision of mezzanine financing for the preparation and implementation of a development project in the centre of St. Petersburg. The deal took place in October 2020 and the first mezzanine financing Otkritie Bank provided to a construction company.
Our services included drafting documentation for the security transaction, as well as rendering legal opinion. In this project, we have successfully combined various mechanisms to ensure the interests of the client. Interesting features of the project include securing liabilities for mezzanine financing using call options in relation to the participation interests of the developer company and vesting the option holder with control powers to protect the interests of the lender.
The LECAP project team in Moscow and St. Petersburg, led by partners Dmitry Krupyshev and Roman Belenkov, also included senior lawyers Roman Zhirnov and Alexander Kudrin.
We greatly appreciate the long-standing partnership with Otkritie Bank and were pleased to take part in such an important project for the development of the investment direction of the Bank's business.