IFC Completes Acquisition of 5% Stake in MDM Bank

03.10.2007 10:50

Moscow, October 3, 2007 – Today MDM Bank is pleased to announce that the International Finance Corporate (IFC) has completed acquisition of a 5% stake in the Bank’s shareholder capital through the purchase of an additional share issue for USD 184 million.

For MDM Bank this transaction marks another important step toward implementing the Bank’s strategy to become Russia’s leading privately-owned bank. As a strategic investor, IFC provides access to global banking expertise and best practices, which MDM Bank will use to further improve operational efficiency and quality of services, as well as to continue to enhance its market-leading transparency and corporate governance.

Michel Perhirin, Chairman of MDM Bank’s Management Board, said: “We welcome the arrival of IFC as a shareholder. IFC will contribute to implementing and refining the Bank’s development strategy, and our partnership with IFC has already produced results: we have successfully implemented several joint projects related to SMEs and mortgage lending, energy efficiency investments and trade finance. We are confident that with the help of IFC, MDM Bank will achieve excellent results and provide even better service to our clients. MDM Bank has set an ambitious goal for itself – to be the leading privately-held bank in Russia – and we are pleased that IFC has come on board to help us achieve this.”

Edward Nassim, IFC’s Vice President for Africa, Europe and Middle East, noted: “We look forward to working with the bank and to supporting its development strategy. MDM Bank has significant potential and we believe that this investment will contribute in setting best business standards in the Russian financial markets.”

Additional Information:

International Financial Corporation

IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that poor people have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through loan participations and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit www.ifc.org.

IFC in Russia. Russia became a member and a shareholder of IFC in 1993. Since then IFC has invested over $3.6 billion in the country, including $527 million in syndicated loans, in over 150 projects across a variety of sectors. IFC’s investment portfolio in Russia currently stands at $2.24 billion, making it the largest country exposure for IFC globally. IFC has invested in key sectors including banking, leasing, housing finance, infrastructure, mining, agribusiness, pulp and paper, construction materials, oil and gas, telecommunications, information technologies, retail, and health care. For more information, visit www.ifc.org/europe.

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). MDM Bank is one of the most dynamically developing banks in Russia and is among the top Russian banks according to assets and equity. Today, MDM Bank is a modern universal financial institution offering a full range of services to its clients.

MDM has one of the highest credit ratings among privately-owned Russian banks – Standard & Poor’s (BB, stable), Fitch Ratings (BB, stable) and Moody’s (Ba1, stable) – and is the only Russian financial organization that has been given a public corporate governance rating by Standard & Poor’s (6+).

In October 2006, Standard and Poor’s awarded MDM Bank the highest ranking in its study of ‘Transparency and Disclosure by Russian banks’. The Bank was also regarded by Euromoney magazine as “one of the leading banks in Russia and Emerging Europe, applying the most advanced standards of corporate governance.”

MDM Bank has received a number of awards from Global Finance magazine:
2005 – ‘Best Domestic Bank’ and ‘Editor’s Special Award for Transparency’.
2006 – ‘Best Forex Bank’, ‘Best Domestic Bank’, ‘Best Domestic M&A Arranger’, and ‘Best Bank in Corporate Governance’. In October 2006, Euromoney magazine awarded MDM Bank ‘Leading Bank in Corporate Governance in Emerging Europe’.
2007 – ‘Corporate Governance Editor’s Award’, and ‘Best Forex Bank’.

Inquiries:

Investor Relations:
+7 495 221 30 75

Public Relations:
+7 495 363 27 41

03.10.2007 16:12

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