Corporate banking activities include deposit and lending services for corporate clients, leasing, factoring, settlements, cash management, cash collection, trade finance, a forfait financing, leasing and export credit agency financing. The corporate banking business is focused primarily on mid-to-large-cap Russian companies. Clients include market leaders and promising mid-size companies in industries such as: IT and telecommunications, insurance, construction and real estate, retail chains, ferrous metals, non-ferrous metals, mining, nuclear energy, transportation, manufacturing and food processing. MDM Bank also has a number of important public sector clients.

Lending

MDM Bank’s corporate lending operations rely on a diversified client base, a wide distribution network, a comprehensive knowledge of the industries in which its clients operate, effective risk pricing and maintenance of the quality of its loan book. MDM Bank is increasing the amount of corporate lending to mid-sized Russian corporations with annual sales in the RUB 600-2,500 mln (USD 24-100 mln) range as this segment presents greater potential for growth and higher margins.

Deposit Taking

MDM Bank offers a range of short-term deposit products to its corporate clients. The Bank has expanded the range of cash management products available to its corporate customers, offering promissory notes, deposit certificates, deposit agreements (allowing for the placement of a number of tranches under the provisions of framework documentation) and foreign currency-denominated notes sold and paid in RUB.

Trade and Project Finance

MDM Bank offers a broad range of trade finance products to its corporate customers engaged in international trade activities.

MDM Bank is among the leaders in the a forfeit financing market in Russia. Forfait transactions provide financing to Russian companies for specific international trade transactions.

A boom in capital investments in Russia has led MDM Bank to vastly expand its long-term project and investment finance activities MDM Bank’s project finance business is focused on midsized, mostly regional companies with projects in underdeveloped sectors like infrastructure, construction materials production, food-processing, agriculture, etc. The project finance portfolio is well diversified with average exposure on a single project between RUB 500 and 600 mln (USD 20 and 25 mln). Long-term exposures are funded through export credit agency (ECA)-backed and commercial facilities provided by leading foreign banks. International funding allows MDM Bank to match maturities on the long-term portfolio and provide relatively low interest rates to customers.

MDM Bank has also established itself as one of Russia’s leading privately owned banks in arranging ECA-backed transactions. Russian corporations remain in need of significant infrastructure and other capital investments, and ECA-backed finance represents one of the few sources of medium-term to long-term financing available to these companies.

Leasing

MDM Bank, primarily through its subsidiary LeasingPromHold, engages in corporate leasing services, principally the leasing of heavy equipment, vehicles and other machinery to its clients.