RAIFFEISENBANK Seeks to Be Top Name Among Foreign Banks in Russia

The Austrian RAIFFEISEN group has officially announced the purchase of all of Russia’s IMPEXBANK. The deal is valued at $550 million. The initial price will increase after the Russian bank finalizes a construction project for its Moscow office. IMPEXBANK and ZAO RAIFFEISENBANK AUSTRIA, RAIFFEISEN’s Russian subsidiary, will operate as independent banks until mid-May 2007, when the deal is to be closed off. The banks will unify their operations and legally merge thereafter. The newly-formed bank is to be the seventh largest foreign subsidiary in Russia by outrunning the INTERNATIONAL MOSCOW BANK.

Considering IMPEXBANK’s strong position on the Russian regional market (45 branches), RAIFFEISENBANK AUSTRIA will suspend its own branch development program in Russia. The united bank will fully focus on attracting new private clients and small and mid-sized businesses throughout Russia. IMPEXBANK will stand to gain from having a new major foreign investor by reducing part of risks available on the Russian market. This will make the bank competitive for many years ahead, IMPEXBANK’s president Dmitry Eropkin has stated.

The FITCH RATINGS agency has placed IMPEXBANK’s long-term ’B-’, short-term ’B’ and support ’5’ ratings on Rating Watch Positive.

Source: VEDOMOSTI, February 2, 2006