OREANDA-NEWS. July 27, 2007. KBC received regulatory approval from the Central Bank of Russia to acquire Absolut Bank. KBC had already received the approval of the Anti-Trust Commission and now holds 95% of the shares of Absolut Bank, while IFC (the International Finance Corporation), the private sector arm of the World Bank Group, holds the remaining 5%.

Andrey Bergen, KBC Group CEO, commented on the closing of the deal as follows: “This acquisition is a logical and important step in KBC’s international expansion. KBC is now entering a new emerging European market. The Russian banking market is one of the largest and most dynamic in emerging Europe, having achieved annual growth of more than 40% in aggregate net profit over the past five years. Absolut Bank is a fast growing bank and an ideal platform for KBC to start building on its long-term presence in this promising market. KBC wants to ensure the growth and future of Absolut Bank for the benefit of its retail and corporate customers, employees, shareholders and the Russian community at large.

Given the professionalism, enthusiasm and determination of all Absolut Bank’s employees, KBC is convinced that, together, Absolut Bank and KBC will be able to grow and further strengthen their position in the league of strong performers in the years to come!”

Jan Vanhevel, CEO of KBC Group’s Central Europe Business Unit, added: ”The acquisition of Absolut Bank is KBC’s very first takeover in Russia. KBC is strongly committed to supporting the management of Absolut Bank in the implementation of their ambitious and successful business and growth plans in Russia, plans which will be further fine-tuned in the coming months. We are convinced that the internationally active clients of the KBC group, and especially those in Central and Eastern Europe, will also be able to benefit from Absolut Bank’s experience, know-how and excellent service.”

Nikolay Sidorov, Chairman of the Management Board of Absolut Bank, welcomed the new shareholder: “The new partnership between KBC and Absolut Bank is the beginning of a new era for our bank. KBC wants to build on the local strengths of Absolut Bank and to bring in its expertise and resources. KBC has already granted us a loan of 300 million US dollars to step up the bank’s retail business growth and to expand the network. This clearly underlines KBC’s strategy of being a long-term shareholder.

KBC is strongly committed to the future of its group companies and fully backs those companies in terms of capital investments, shared services, knowledge-sharing and products. We are convinced that the partnership with KBC will be to the benefit of our customers, employees and all other stakeholders.”