MDM Bank Senior Unsecured Notes Issue

19.01.2007 15:30

Moscow, January 19, 2007 - MDM Bank opened the Russian capital markets in 2007 by launching and pricing today the first Russian Eurobond offering of 2007. The transaction is an offering by MDM International Funding plc. of US$425 million 3-year Reg S Senior Unsecured Loan Participation Notes. The deal was well received, as demonstrated by strong demand, an oversubscribed book and pricing tighter than the initial price guidance.

The deal was announced on 17 January with the Bank hosting a group investor call post announcement as a credit update to European and Asian investors. The orderbook was above US$1bn and is well diversified, by both geography and investor type. Over 100 investors participated in the offering. Geographic split was as follows: UK 23%, Switzerland 19%, Asia 17%, Iberia 7%, Russia 5%, Italy 5%, Austria 4%, Greece 3%, Germany 3%, Netherlands 3%, Scandinavia 3%, other 8%. Banks bought 35%, fund managers 23%, private wealth management 32%, hedge funds 4%, insurance/pensions’ funds 5%, others 1%.

Michel Perhirin, Chief Executive Officer of MDM Bank, commented, "We are very happy with the success of the placement. The largest to date Eurobond offering of the bank demonstrates confidence investors have in Russian economy and MDM Bank." "This deal clearly positions MDM Bank in leading position among Russian private banks" he added.

Deutsche Bank AG London and Goldman Sachs International were the joint lead managers and joint bookrunners of the deal. FSA stabilisation.

MDM Bank

MDM Bank was founded in December 1993 and holds a General Banking License issued by the Central Bank of Russia (#2361 dated 13 February 2003). It is one of the most profitable banks in Russia. Today, MDM Bank is a modern universal financial institution offering a full range of services to its clients. MDM has split-highest credit ratings among privately-owned Russian banks: Standard & Poor’s (BB-, stable), Fitch Ratings (BB-, positive) and Moody’s (Ba2), and is the only Russian financial organization that has been given a public corporate governance rating by Standard & Poor’s (6+).

The magazine Global Finance named MDM Bank “Best Domestic Bank” in 2005 and has also awarded it the “Editor’s Special Award for Transparency.” Global Finance named MDM Bank the Best Bank in Russia in four Categories for 2006: Best Forex Bank, Best Domestic Bank, Best Domestic M&A Arranger, and Best Bank in Corporate Governance. Global Finance also named MDM Bank “Russia’s Best Foreign Exchange Bank” in 2007. MDM Bank achieved the top ranking in the Standard and Poor’s Transparency and Disclosure Survey by Russian Banks in 2006.

Inquiries:
Evan Boiko +7 495 221 30 75
Vice President, Investor Relations

PR Department +7 495 363 27 41

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09.03.2007 09:04

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