Promsvyazbank completes placement of new share issue

The Bank of Russia has registered Promsvyazbank’s (PSB) new share issue. The new share issue was placed with two investors – the European Bank for Reconstruction and Development (EBRD) and Commerzbank Auslandsbanken Holding AG (Commerzbank), PSB’s minority shareholder. EBRD has thereby become PSB’s new shareholder with an 11.75% stake, and Commerzbank has maintained its 15.32% share in PSB capital. The share of Promsvyaz Capital B.V., the Bank’s majority shareholder, has decreased to 72.93% from 84.68%.

As a result of the new share issue, PSB shareholders’ equity increased by RUB 5.4 billion, while N1 capital adequacy ratio rose by over one percentage point to approximately 12% (with a minimum required level of 10%). PSB charter capital increased by 16.1% to RUB 10.44 billion.

The agreements between EBRD, PSB and its shareholders were signed in November 2009. The EBRD investment in PSB capital totals approximately RUB 4.6 billion, which makes it the largest EBRD equity investment in a Russian bank to date.

The beneficiary owners of Promsvyaz Capital B.V. are Messrs. Alexey Ananiev and Dmitry Ananiev.

Commerzbank Auslandsbanken Holding AG is a 100 per cent subsidiary of Commerzbank AG, one of the largest banks in Germany.

The European Bank for Reconstruction and Development is an international financial institution that supports projects in 30 countries from central Europe to central Asia. The Bank invests mainly in private enterprises, provides project financing for banks and corporates, both new ventures and existing companies. It also works with publicly-owned companies to support privatization, restructuring of state-owned firms and improvement of municipal services. EBRD is owned by 61 countries and two intergovernmental institutions.

About Promsvyazbank

OJSC Promsvyazbank, founded in 1995, is one of the leading privately-owned Russian banks, with total assets of RUB 414.5 billion, and total capital of RUB49.3 billion under IFRS as of 1 July 2009. Holding company Promsvyaz Capital B. V. owns 84.68% of the Bank, and Commerzbank Auslandsbanken Holding AG, a subsidiary of the second-largest German bank Commerzbank AG owns the remaining 15.32%. PSB has the following international credit ratings: “Ba2” from Moody’s Investors Service; “B” from Standard & Poor's; “B+” from Fitch Ratings. As of 1 February 2010, PSB had a network of about 240 points of sale in Russia, including 48 branches, a foreign branch in Cyprus, and representative offices in China, India and Ukraine. Banking Group Promsvyazbank includes OJSC Promsvyazbank (head organization), OJSC Volgoprombank, OJSC Yarsotsbank and OJSC Nizhny Novgorod Bank. http://eng.psbank.ru/