Financed ProjectsBank Soyuz

Identification Code:

OP/07/0675

Total Operation Cost:

50.000.000

Maturity:

12 months

Operation Status:

Description and Purpose of the Operation:

Participation in a USD 50 million Syndicated Term Loan to Bank Soyuz, Russia for general financing purposes.

Countries of Operation:

Russia (100,00 %)

Financial Product:

Loans

Sector:

Financial Institutions

Domain:

Private

Borrower/Client:

Soyuz is part of Basic Element Group (BasEl), which is controlled and beneficially owned by Mr. Oleg Deripaska, a prominent Russian entrepreneur. BasEl which was established in 1997 (known as 'Sibirsky Aluminium' before 2001) positions itself as a private equity fund and runs a portfolio of core investments in six sectors: energy, machinery, natural resourses, financial services, construction and development. As end 2006 the bank's total equity was USD 364million (RUR 9.6 billion), total assets - USD 2.6 billion (RUR 69.55 billion), the net profit - USD 105.5 million (RUR 2.78 billion). Independent rating and analytical agencies place Soyuz among top-35 largest Russian banks. The bank ranks the 26th largest bank in terms of capital and the 33rd largest bank in terms of total assets. Soyuz is a universal commercial bank rendering all banking services. Its priority activities are corporate lending, retail services, bond issue arrangement and underwriting, trade financing, operations on stock and foreign currency markets. The bank is rated B1 by Moody's and B- by Standard and Poor's with stable outlooks.

Co-Financiers/Participants:

COMMERZBANK Aktiengesellschaft, Rainffeisen Zentralbank Osterreich Aktierngesellschaft, ZAO Raiffeisenbank Austria, Standard Bank Plc VTB Bank (Austria)AG, Landesbank Berlin AG, AKA Ausfuhrkredit- Gesellschaft m.b.H, N.V. DE INDONESISCHE OVERZEESE BANK, Hamburg Branch Oberbank AG

Guarantors/Sponsors:

Developmental and Regional Cooperation Impact:

The proposed operation presents a real opportunity for the Bank to expand its operations in the Russian banking sector providing credit to an eligible financial institution through syndication. The loan contributes to the business expansion of the Borrower that will have a positive spill-over effect to its SME clientele, local traders and many individual retail clients that are the market's most dynamic element of growth. To facilitate economic development in member countries, BSTDB supports local financial intermediary and helps this key sector of the economy grow.

Environmental Classification and Impact (summary):

The Borrower is required to conduct its business with due regard to the environment and public occupational health and safety. The Borrower needs to observe the BSTDB Negative List of Products, including environmental regulation and standards in effect from time to time in Russian Federation.

Operation Leader:

Financial Institutions II

E-mail:

fi2@bstdb.org