Orient Express Bank bank

Восточный Банк
Orient Express Bank
Full name
PJSC "Orient Express Bank"


on 01.04.2019
675000, Blagoveshchensk, pereulok Svyatitelya Innokentiya, 1
Banki.ru reference

Commercial Bank Vostochny was founded as Far East Regional Joint Stock Bank of Vneshtorgbank of the RF (Dalvneshtorgbank) in Blagoveshchensk (the Amur region) in May 1991. The bank joined the national deposit insurance system in February 2005. Since start 2006 the lending institution carried on business as Orient Express Bank (CB Vostochny), and in the fall of 2014 the bank turned into a public joint stock company (PJSC CB Vostochny, in brief).

In 2001, Sibacadembank (later Ursa Bank, now part of MDM Bank) became the bank’s shareholder and major partner. So Vostochny came into focus of banker Igor Kim who is famous for M&A deals and his partners. It was decided that the bank will grow via both organic growth and M&A deals. As a result, in the course of several years Vostochny took over a number of small banks, namely Etalonbank, Bank Dvizhenie, Kamabank, Rostpromstroybank, City Mortgage Bank, and Santander Consumer Bank.

Until 2010 Igor Kim was Orient Express Bank’s controlling beneficial owner, but a new shareholder turned up in November 2010. It was Baring Vostok Private Equity Fund that specializes in direct investment in Russia and other CIS member states. The financial institution bought a 20% stake in the bank, and later upped its holding to 30%. In June 2015, the investment fund also participated in the bank’s capital increase program (Rub 2.6 bln), investing around Rub 2 bln and doubling its stake from 33.88% to 64%. The bank’s additional shares were also purchased by Russia Partners (via Troite Investments Limited) that raised its stake from 6.97% to 16.08%. The additional share issue diluted other shareholders’ stakes.

In summer 2016, Uniastrum Bank bought into Orient Express Bank by buying half of the additional share issue (Rub 3 bln) and grabbing 24.9% of the bank’s capital. Plans to take two banks under one roof were announced as early as July 2016. The Orient Express Bank-Uniastrum Bank merger was fully accomplished in January 2017. Upon reorganization in the form of a takeover Uniastrum Bank ceased operations, and all rights, obligations and assets held by Uniastrum Bank with its network of branches were assigned to Orient Express Bank. Branches of the taken over bank continued operation under the Orient Express Bank brand. The bank’s large-scale reorganization had no impact on the bank’s top executive, and management board chairman Alexey Kordichev continued to run the lending institution. The merger with Uniastrum Bank made it possible to boost assets by 40%, and 40,000 SMEs were added to the merged bank’s clientele.

According to the list of persons who control or have substantial impact on the bank (as of May 4, 2017), the lending institution’s beneficial owners are US citizen and board member Michael John Calvey who holds a 44.57% stake in the bank via Baring Vostok Managers Holdings Limited, Artem Avetisian (32% through Finvision Holdings Limited), Russia Partners (beneficial owners are Drew Guff (2.34%), George Siguler (2.34%), and Donald Spencer (1.82%)) controls 6.5%, Marina Ushakova and Grigory Zhdanov (2.26% each), board chairman Sherzod Yusupov (4%), Yury Danilov (4%), and Alexander Taranov (1.14%).

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