| MDM
Financial Group MDM Financial Group (or ‘MDM’ for short) is the second largest privately-owned banking group operating in Russia as measured by both assets and capital. At 31 December 2002 MDM had total assets of US$ 3.42 billion and total shareholders’ equity of US$ 433 million. MDM’s three core business areas are corporate banking, investment banking and retail banking and its clients include approximately 50 of Russia’s top 100 corporates. MDM’s presence in Russia is growing rapidly, and it now has a network of over 100 full service offices nationwide. In 2002 MDM was the most profitable privately-owned banking group in Russia with net profit after tax of US$ 110 million. Its return on average equity was 29.4%. Despite a challenging operating environment, MDM’s results show that banking in Russia can be a sustainable and profitable business based on genuine financial intermediation between non-related parties. MDM’s financial strength is underlined by its credit ratings. Following upgrades from Fitch (to ‘B’) and Standard & Poor's (to ‘B‘), and the assignment of first-time ratings from Moody's (at the level of ‘B1’), all in the second half of 2002, each of these ratings is at the maximally high level for a Russian privately-owned banking group. At the heart of all of MDM’s operations is a strong corporate governance programme. MDM has initiated a range of measures designed to achieve best international corporate governance practices, including the creation of a simple and transparent legal structure and the delineation of ownership and management functions. MDM also issues quarterly financial statements in accordance with International Accounting Standards. In the fourth quarter of 2002 MDM Bank received a first-time corporate governance rating from Standard & Poor’s. MDM Financial Group has also led the return of Russian banks to international markets. In 2000 MDM arranged the first western-financed syndicated loan for a Russian corporate since the crisis, and in 2001 was the recipient of the first uncollateralised syndicated loan for a privately-owned Russian bank since the crisis. During the last 18 months, MDM has finalised five transactions with export credit agencies, including the first post-crisis deal for a Russian bank with the U.S. Eximbank, and it has re-opened the a forfait financing market in Russia. In December 2002, MDM placed its debut Eurobond, a Regulation S US$ 125 million transaction, issued with a coupon of 10.75% at par. |
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| Raiffeisenbank
Austria CJSC Raiffeisenbank Austria has been operating in Russia since 1996 and now disposes of 6 business locations in Moscow and a regional branch in St. Petersburg. The Bank’s operations are primarily focused on commercial, retail, and investment banking activities.Two affiliated companies have also been established – Raiffeisen-Leasing (1999) and Raiffeisen-Investment (1998). Bank ranks among the Top 15 in terms of total assets
and is one of the leading arrangers of the local debt capital market
financing for the largest Russian corporations. In 2001 the bank
acted as arranger/co-arranger in 28% corporate bond issues placed
in Russia (measured by placement volume); the bank's share in local
syndicated loans market in 2001 exceeded 38%. The bank also offers
its clients unique expertise in structuring of complex capital market
transactions involving both domestic and international sources of
financing. A series of awards the Bank has been granted throughout its presence in Russia illustrates the escalating success Raiffeisenbank enjoys - "Best Foreign Bank in Russia" in 1999 and 2000 by the British financial magazine Euromoney, followed afterwards by "Best Bank in Russia" in 2001. |
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| ROSBANK ROSBANK has a network of regional branches spread across Russia and a 100% subsidiary in Switzerland. Rosbank has more than 11,500 corporate clients. The bank has already built up a $1.176 billion well diversified credit portfolio. Retail is a new direction for Rosbank, which continues to concentrate on its core businesses, offering a complete range of financial services. Rosbank has established itself as leading in both issuing and underwriting domestic corporate bonds: the bank has issued more than Rubles50 billion in ruble bonds and is one of the top bond underwriters. Rosbank offers its customers a package of related services including preliminary research, advising, documentation assistance, arrangement of placement, underwriting, marketing and liquidity support. New products are constantly being developed. As the bank's business becomes increasingly global, Rosbank makes efforts to improve transparency. It adopted international accounting standards several years ago and recently moved over to reporting audited accounts twice a year. Rosbank's openness has been recognised by the ratings agencies Moody's and Fitch. |
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| TRUST
Investment Bank TRUST Investment Bank is one of Russia’s leading financial investment institutions. It has the highest profit per employee among Russian banks. Based on 2002 results, TRUST is ranked first by the profits before provisions to assets ratio and the ratio of operating revenues to assets, making it the most efficient Russian bank. According to ‘The Banker’ rating, The Bank is in the Central and Eastern Europe top 25 banks and in the world’s top 1,000 banks based on 2002 performance. According to Bloomberg data, keeps 15th place globally among advisers in M&A deals. TRUST is the top manager and underwriter of bond issues for corporations and Russian regions. In 2002 TRUST managed bond issues totaling $500 mn. According to the C-Bonds information agency, TRUST Investment Bank held first place in the first half of 2003 among underwriters and organisers of corporate rouble bond issues, and also in the overall rating of underwriters of rouble bonds. According to the same rating, TRUST Investment Bank is the leader among Russian banks in Russian issuers Eurobonds’ placements. In the area of trade and project finance, TRUST clients include Gazprom, Sibneft, Norilsky Nickel, TNK, Russky Aluminy and many others. The bank’s loan portfolio totals over $330 mn, making it 15th in this category. |
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Vnesheconombank Vnesheconombank (VEB), founded in 1924, is one of Russia’s oldest internationally recognized banks. It is a 100% state-owned specialized financial institution. VEB’s activities have been evaluated by the world’s leading rating agencies. Its short- and long-term credit ratings are at par with Russia’s sovereign credit rating. The audit is conducted by Ernst & Young, one of the leading international auditors. Over the years, the Bank established wide international ties and acquired reputation of a first-class banking institution with a unique experience in servicing major programs and projects under intergovernmental agreements. Among VEB’s priorities are the following:
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| Web-invest
Bank Bank is a center of a financial group Web-invest,
which also incorporates Asset management company “Creative
Investment Technologies” (CIT) and Brokerage company “Web-invest.ru”.
Synergy of the Group assures a high quality services to its clients. Competitive advantages of Web-invest Bank include: According to the rating of investment banks activity on the corporate and municipal bond market (“Cbonds.ru” Agency) Web-invest Bank was ranked #2 among the leading underwriters and #3 among leading book runners in Russia. Web-invest Bank was named “The best book runner of Russian Regions bond issues 2002” and “Break-through on the corporate bonds market 2002” (“Stock-market magazine”). |
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