OREANDA-NEWS. May 10, 2011. RusRating released banking shorts for April 2010.

Avangard Bank

During late March and April 2011 Avangard Bank opened new offices in Kirov, Voronezh and Belgorod.

Bank 24.ru

Bank24.ru has launched the 24.ru payment system, which operates in a similar manner to other payment systems in Russia. Among other services clients can manage their balances electronically, execute payments on line, acquire VISA Virtual cards and submit loan applications without needing to have an account.

Bank of Moscow

On 11 April 2011 it emerged that Andrei Borodin and Lev Alaluyev had sold their shares in Bank of Moscow to businessman Vitali Yusufov. According to media reports, the Bank itself extended Yusufov a loan of approx. USD 1.1bn to finance the deal, with a stake in the German shipbuilder Nordic Yards pledged as collateral. Unconfirmed information suggests that Yusufov may hold some 26% of Bank of Moscow equity. In an interview he told the media that he supports the Bank of Moscow/VTB merger. Vitali Yusufov is the son of Igor Yusufov, a former Russian Federation Minister of Energy and until recently the Russian Federation President’s special representative on international energy partnerships. Vitali Yusufov is co-owner of Nordic Yards.

On 21 April Bank of Moscow shareholders voted to remove Andrei Borodin as President of the Bank. Mikhail Kuzovlev was appointed in his place. Kuzovlev has announced that an analysis of the Bank’s business will be completed within two months, after which a new medium-term development plan will be put in place. The Bank’s partnership agreement with the Moscow city authorities will be renewed and it will remain the city government’s principal financial institution.

Following the 11 April shareholders’ meeting VTB President Andrei Kostin announced that a new Board of Directors will be elected soon at the Bank’s AGM.

B&N Bank

On 1 April 2011 B&N Bank’s Board of Directors called an extraordinary general shareholders’ meeting for 25 April. The agenda includes an increase in the charter fund via the supplementary issue of ordinary named shares for distribution by closed list. The new shares will be taken up by LLC  TradeWest, a limited liability company controlled by M. Shishkhanov, who altogether controls 87.07% of B&N Bank equity.

Larisa Shvetsova has been appointed head of the Bank’s Corporate Business Block. Her key tasks are developing client business and expanding annual turnover.

Bank Tavrichesky

Bank Tavrichesky has opened an operating office in Yemva (Komi Republic).

Center-Invest Bank

Center-Invest has won the prestigious STP 2010 award for perfect handling of international dollar payments. The award is presented on the basis of year-end results for the quality of foreign currency payments. Straight Through Processing (STP) is a payment format standard that allows payments to be handled automatically without personal intervention by bank employees.

Credit Bank of Moscow

On 22 April 2011 Credit Bank of Moscow signed an agreement that will see it provide cash handling services to clients of ZAO AKB Express-Credit, another bank. CBM is the sole supplier of such services to AKB Express-Credit and its clients and in the near future will also take over that bank’s internal cash transfer operations on an outsourcing basis.CBM is a leader in cash handling services in Moscow region. As of April 2011 its vehicles were operating on 105 routes and serving some 5100 locations.

On 21 April the Bank’s Supervisory Board approved an increase in charter capital via the issue of 4.5bn ordinary named non-documentary supplementary shares with a nominal value of one rouble each. The new equity will be distributed by closed list and acquired in full by the Bank’s sole shareholder, LLC  Kontsern ROSSIA, whose beneficiary owner is Roman Avdeev. The shares are to be taken up at par.

On 15 April the Bank placed R5.0bn in three-year BO-04 series exchange bonds on MICEX. The bonds include six semi-annual coupon periods, with a put option in effect on 19 October 2012. Placement took place via open book-building. The issue was organised by Zenit Bank and VTB Capital, with CBM itself acting as technical and payment agent.

On 13 April the Bank paid out R145.1mn on the second coupon of its 08 bond series (R48.37 per bond at 9.7% per annum).

CBM has issued a R1.912bn guarantee on behalf of JSC  OKhK UralKhim that covers payments due on securities issued by the company.

The Bank has also issued a R2.9bn guarantee to JSC  Energostroiinvest-Holding. Payment covers the cost of full-scale plant and equipment renewal at the Trubino substation operated by JSC  FSK UES subsidiary MES Tsentra. The 500kW facility is part of the Moscow energy ring.

CBM has bit successfully for the right to install payment terminals at the the rail transit terminal of Moscow’s Domodedovo airport.

FundserviceBank

On 4 April 2011 FundserviceBank confirmed that no existing shareholders had exercised their right of first refusal in connection with the current supplementary share issue. A total of 750 shares are therefore available for purchase by open subscription. On 24 January the Central Bank of Russia registered a planned supplementary issue of 750 shares to be placed via open subscription at a price of R670 000 each.

The Board of Trustees of the Moscow Small Business Loan Support Fund has admitted FundserviceBank to its SME loan guarantee programme. The participating banks have a combined credit limit of R994.8mn.

Gazprombank

Gazprom is looking at the possibility of selling off a stake of 16% or more in Gazprombank while retaining a blocking interest. According to several Russian media reports a deal could be completed before the end of the current year and the shares in question may be sold on the open market. (An IPO had been discussed even before the recent crisis but to date no such offering has taken place.) Broadly speaking these plans are consistent with the recent trend towards formally distancing the Bank from the gas monopoly and direct state regulation. The upcoming presidential elections may also be a factor.

On 4 April 2011 GPB’s Board of Directors took the decision to drop Sergei Sergeyevich Ivanov from the Management Board, simultaneously removing him as Deputy Management Chairman. This followed Ivanov’s appointment as CEO of the SOGAZ insurance group.

On 28 April 2011 the Bank finalised the structuring of a mortgage-backed bond placement by the special-purpose company JSC  ISO GPB-Ipoteka Dva. The placement consists of two series (A and B) backed by a common pool of mortgage loans serviced by the bank GPB-Ipoteka. The total value of the placement is R7.1bn, including R5.5bn in A-class bonds and R1.6bn in class B. A R353mn cash reserve fund provides additional backing. The coupon rate has been set at 7.5% for the first five years, with payments and partial amortisation due on a monthly basis. The B-class bonds were issued at a floating rate. GPB-Ipoteka initiated the deal and is active as service agent, with Gazprombank as organiser.

GPB has bid successfully for the right to provide to renewable lines of credit (worth R4.46bn and €100mn) to FGUP Kosmicheskaya Svyaz [trs. Space Communications Federal State Unitary Enterprise] to finance the construction of three communications satellites: Express-AT1, Express-AT2 and Express-AM8. Construction could take up to eight years.

GPB, Gazprombank (Switzerland) Ltd., Vneshekonombank (VEB), Russian Commercial Bank (Cyprus) Ltd. and ZAO Roseximbank have signed a credit agreement to provide up to USD 123.3mn in “tied” syndicated export financing for a period of up to eleven years to the Ecuadorian state-sector company HIDROTOAPI E.P. GPB and Gazprombank (Switzerland) are putting up USD 50mn.

Investbank

On 12 April Investbank acquired a 15% stake in LLC  Izdatelskaya Gruppa “PRESS KOD” [trs. Press Code Publishing Group LLC].

MDM Bank

On 8 April 2011 MDM Bank’s Board of Directors issued a recommendation that no dividends be paid on either ordinary or privileged shares of any type on the basis of financial results for 2010.

The Bank is planning to take in up to USD 50mn for five years from the EBRD under a diversified payment rights programme with a total value of USD 150mn. In addition plans call for a USD 50mn loan from WestLB, which is organising the securitisation deal, with the remaining USD 50 to be put up by other creditors.

The Moscow Court of Arbitration has awarded MDM Bank USD 55.943mn, to be paid by the Peresvet real estate development group in connection with obligations under a loan contract.

The Ninth Appeals Court of Arbitration has upheld a ruling by the Moscow Court of Arbitration, which ordered JSC  Dalnevostochnaya Transportnaya Gruppa [trs. Far East Transport Group OJSC] and its subsidiaries to pay R1.15bn to MDM Bank.

Orient Express Bank

Orient Express Bank continues to actively expand its regional service network: six new service locations were opened during the past month.

Petrocommerce Bank

Petrocommerce acted as general sponsor of the XXII Congress of the Association of Russian Banks.

The Bank has introduced a new service as part of its efforts to develop consumer financing programmes. Potential borrowers can now apply for an uncovered loan (i.e. financing provided without collateral or a guarantee) via the Petrocommerce website.

ProbusinessBank

Militia Major-General Sergei Kazantsev, the former head of the Moscow Traffic Police Safety Inspectorate, has been appointed Vice-President for Corporate Security at the LIFE group.

The Bank has completed a USD 11.5mn issue of subordinated eurobonds in the form of loan participation notes due for redemption in May 2016. The bonds were placed at 99.094% of par and pay a coupon rate of 11.75% per annum. In November 2010 ProbusinessBank took in a USD 50mn subordinated loan at 11.75% under the LPN programme. These notes will circulate for five and a half years. Placement was organised by BCP Securities.

The Bank has signed a partnership agreement with the Voronezh regional authorities and the State Small Business Support Fund.

Promsvyazbank

In April 2011 PromsvyazBank finalised placement of a three-year, USD 500mn eurobond series paying 6.2% per annum. The bonds were placed under an MTN programme in accordance with rule 144A/RegS. Placement was organised by PromsvyazBank itself, along with Deutsche Bank and JP Morgan. This marks the Bank’s largest issue and lowest rate ever on the international market and is also its first eurobond series registered in the United States.

The Bank has paid out USD 9.8mn on its senior LPN series due for redemption in October 2011.The USD 125mn series paying a fixed semi-annual coupon rate of 8.75% per annum was placed on 18 October 2006 via the SPV company PSB Finance S.A., which is registered in Luxembourg. On 20 March 2007 the same company placed an additional USD 100mn in eurobonds on analogous terms (USD 225mn in total).

RaiffeisenBank

Maria Minayeva, who heads Raiffeisenbank’s Risk Management Directorate, has been appointed to its Management Board pending approval by the Central Bank of Russia. In her new role Minayeva will be responsible for developing and implementing the Bank’s risk management strategy.

Raiffeisenbank’s shareholders have elected a new six-member Supervisory Board consisting of Herbert Stepic, Martin Grull, Peter Lennkh, Aris Bogdaneris, Karl Sevelda and Johann Strobl. The previous Board was made up of the same six members plus Heinz Wiedner.

Rosbank

At an extraordinary general meeting on 15 April 2011 Rosbank shareholders approved a merger with Bank Societe Generale Vostok (BSGV). Shareholders also approved a revised version of the Bank’s charter and took decisions on other matters related to the merger.

On 25 April the Central Bank’s Department of External Affairs and Public Relations announced that the merger process had begun.

Sarov Business Bank

During the second half of March Sarov Business Bank opened a new operating office in Vladimir. Its service network currently covers nine cities in its home region (Nizhni Novgorod, Sarov, Arzamas, Dzerzhinsk, Gorodets, Kstovo, Shakhunya, Vyksa and Zavolzhye) plus Moscow, Cheboksary and now Vladimir. Plans call for a service location in Diveyevo (Nizhni Novgorod region) to open in the near future.

SKB-Bank

SKB-Bank has placed its R2bn BO-05 exchange bond series in full. The first coupon rate was set at 8.25% per annum. The bonds were listed on MICEX on 15 April 2011.

The Bank has begun working with the Regional Information Centre set up with the backing of the Sverdlovsk regional administration, which was set up as part of a “Residential and Utility Reform and Modernisation Programme” for the period 2010-2020. Bank tellers will now accept payments to utility companies covered by the Centre’s system at no charge; costs are covered by the Centre itself.

Trust National Bank

The Bank has won first place in the EFFIE (Russia) Brand of the Year award for 2010. The EFFIE awards are internationally recognised and are endorsed by the American Marketing Association.

Uralsib Bank

During April 2011 Uralsib Bank acquired a 25.1% capital stake in JSC  Universalnaya Elektronnaya Karta Moskovskoi Oblasti [trs. Moscow Regional Universal Electronic Card OJSC].

According to the information agency Cbonds.ru, FK Uralsib was one of Russia’s top ten organisers of corporate debt issues and one of the country’s top six private-sector investment companies in the first quarter of 2011. The total volume of bond issues organised by the corporation during this period was R8.9bn.

The Bashkir regional authorities and FK Uralsib have signed a general partnership agreement.