BSTDB extends a subordinated loan to Bank ZENIT

Press Release | 22-Jun-2009

The BSTDB loan with a tenor of 7 years will strengthen the capital adequacy of Bank Zenit by providing long-term liquidity and will increase its capacity to expand lending to its clients.

“We are glad to support Zenit Bank to sustain its business in this very uncertain situation”, stated Andrey Kondakov, BSTDB Vice-President Banking signing the loan agreement.

Commenting on the agreement, Deputy Chairman of the Management Board of Bank Zenit Elena Gornaya mentioned: “Bank Zenit is a client of the Black Sea Trade and Development Bank since February, 2008. We are pleased to acknowledge the mutually beneficial nature of our partnership and welcome its development”.

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Banking Group ZENIT was formed in 2005 as a result of the purchase by Bank ZENIT of a controlling stake in JSB Devon-Credit (OJSC). In 2007, the Banking Group acquired OJSC Lipetskkombank and JSB Sochigazprombank LLC (later renamed into Bank ZENIT Sochi). OJSC Spiritbank (the city of Tula) joined the Group in December 2008. According to the consolidated financial statement of the Banking group for 2008, made in accordance with IFRS, equity capital of the Banking group amounts to RUR 16 765 mn, assets amount to RUR 187 317 mn. The Group provides a full-scale range of banking services in the following areas: comprehensive services to the corporate clients, retail services, private banking, investment banking and interbank business. Banking Group ZENIT is represented in 23 of 83 regions of the Russian Federation; its own retail network consists of 164 points of sale. The Group has created a wide international correspondent network of banking partners, with co-operation from more than 80 international institutions in Europe, America and Asia. Bank ZENIT is currently rated B?3/Negative by Moody's and B+/Negative by Fitch.

The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Türkiye, and Ukraine. The BSTDB headquarters is in Thessaloniki, Greece. BSTDB supports economic development and regional cooperation by providing loans, credit lines, equity and guarantees for projects and trade financing in the public and private sectors in its member countries. The recently increased authorized capital of the Bank is SDR 3 billion (approx. USD 4,85 billion). BSTDB is rated Long Term Baa1 and Short Term P2 with positive outlook by Moody’s.