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SDM-Bank and EBRD Complete Equity Transaction

26.05.2011

 

SDM-Bank and EBRD Complete Equity Transaction

Press-Release

Moscow, May 26, 2011.

Moscow Branch of the Bank of Russia registered the additional share issue whereby the European Bank of Reconstruction and Development (the EBRD) purchased a 15 percent equity stake in SDM-Bank.

In September 2010 the EBRD’s Board of Directors approved a primary 15% equity investment in SDM-Bank. In January 2011, the EBRD and SDM-Bank executed a Subscription Agreement and the EBRD invested 352 ml rubles to SDM-Bank equity. As a result of the completion of the additional issue paid up and registered share capital of SDM-Bank increased by 53.3 million to 355.4 million rubles. The total capital increased by 352 million rubles.

SDM-Bank and the EBRD have developed and agreed an Institutional Building Plan (IBP) to set the Bank’s short and medium-term development. This strategic partnership will enable the Bank to enhance SMEs lending programs. According to Maxim Solntsev, SDM-Bank’s CEO, “We are pleased to formally complete the EBRD’s equity investment into SDM-Bank. Both teams worked exceptionally well together to ensure a smooth and efficient execution. We are grateful to the EBRD teams in Moscow and London for their continued support. SDM-Bank’s team is looking forward to building and broadening our strategic partnership with the EBRD.”

In 2010 the EBRD and SDM-Bank signed credit agreements for two 5-year loans totaling 375 million rubles to finance Russian small and medium enterprises, and facilitate micro-credit lending development.

About SDM-BANK

JSC SDM-Bank was established in 1991. The bank has the General license of the Bank of Russia No 1637. The bank participates in the Deposit Insurance System since 2004. SDM-Bank aims to deliver best-in-class financial services across three principal business lines:

· Corporate Lending (with a particular emphasis on SMEs)

· Corporate Cash Management (with a particular emphasis on SMEs)

· Private Client Services

The Bank has head office in Moscow, 14 full-service branches, 25 corporate offices, 8 regional branches in Perm, Voronezh, Saint-Petersburg, Krasnoyarsk, Tver, Nizhniy Novgorod, Omsk and Rostov-on-Don and representative office in London.

As of April 1, 2011 SDM-Bank’s Assets were RUB23.95 bn., Capital was RUB2.41 bn., Balance Sheet profit was RUB164.91 mn. SDM-Bank’s number of corporate clients exceeded 12 thousand and retail customers exceeded 72 thousand.

On 3 February 2011 RusRating upgraded SDM-Bank's outlook to "Positive". The rating itself was unchanged at “BB”.

Fitch SDM-BANK’s IDR is «B» with a Stable Outlook upgraded in June 2010.

About EBRD

European Bank for Reconstruction and Development (EBRD) is an international financial organization that funds projects in 29 countries from Central Europe to Central Asia. EBRD was founded in 1991 with participation of 61 Governments, the

European Union and European Investment Bank. EBRD supports entrepreneurship and the transition to an open and democratic market economy, by investing primarily in the private sector whose needs cannot be met by the market.

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