In 2006 the bank’s international business saw a number of essential and conspicuous events resulting from its rapid growth and development.

The efforts of the Bank’s shareholders, managers and personnel aimed at an increase in business transparency, advancing of internal banking processes and risk management got high marks of our partners, as well as independent experts – the world’s largest rating agencies and recognized financial editions.

• According to the Euromoney survey, Promsvyazbank is among the best banks of European emerging markets in terms of corporate governance.
• It’s mentionworthy, that in 2006 Promsvyazbank was for the first time listed among the Top 300 European Banks by The Banker, an acknowledged international journal for the banking sector.
• According to the survey of the Finance New Europe, the international business journal, Promsvyazbank was rated the second best after Vneshtorgbank among the top Russian banks in 2006. The Finance New Europe traditionally awards financial institutions that contributed to the economic growth in Eastern and Central Europe. The survey was based on financial statements data, analysis of the major rating agencies and inquiry results of market players. The volume of transactions and profitability were treated as the key criteria; however, regional development and implementation of new products and technologies were taken into account as well.

In 2006, Promsvyazbank raised its reputation of a reliable borrower in international capital markets.

• The Aggregate amount of funds borrowed (excluding trade and project financing) exceeded USD900 mln. and comprised:
• 2 syndicated loans for USD200 mln. and USD205 mln. with tenor 18 and 12 months, respectively;
• Eurobonds for the total amount of USD325 mln. (including a senior $125 million 5-year tranche and a subordinated $200 million 5.5-year tranche);
• a subordinated loan for USD30 mln. with tenor 5.5 years;
• loans for other purposes (small and medium enterprises, retail programs, general corporate purposes) in Roubles and US dollars equal to USD170 mln. for the period of 1 to 7 years.
• According to SWIFT international payments system, the share of different L/Cs issued by JSCB Promsvyazbank in 2006 was 8,2% of the total volume of similar instruments issued by Russian financial institutions. Furthermore, the share of the bank on L/Cs in Q4 of the last year went up to 9%.
• The aggregate international financing transactions in 2006 totaled to USD1.4bn, of which USD1.2 bn. were granted to short- and middle-term financing with tenure up to 5 years and USD200 mln. – to long-term project financing with tenure up to 12 years, mainly export credit loans.
• The international payment activity of Promsvyazbank in EURO was awarded Payment Quality Award by Dresdner Bank AG. Today Promsvyazbank is one of the leaders among Russian banks in foreign trade payments servicing. Widely spread network of correspondent accounts together with partner relations with prime foreign banks are the keystones of quality servicing of foreign-economic activity of Promsvyazbank’s customers.

In 2006, the Bank kept on promoting relations with foreign banks and international financial institutions and looked after the raising number of partners and the extension of partnership geography.

In 2006, Promsvyazbank closed the transaction with Commerzbank AG targeted at participation of the last in an increase in the Promsvyazbank’s share capital. The Bank’s share capital was increased from RUR3.8 bn. to RUR5.1 bn. The new issue ended up with Commerzbank obtaining a 15.32 per cent stake in Promsvyazbank.