Bank Soyuz Russia National Scale Rating Raised To 'ruBBB'; Global Ratings Affirmed; Outlook Stable
27.09.10
- Russia-based Bank Soyuz remains under "financial recovery" status and under the management of the Russian government's State Corporation Deposit Insurance Agency (DIA).
- The bank's stand-alone credit profile benefits from substantial ongoing explicit financial support from the DIA, mainly in the form of funding and capital injections.
- We are affirming the 'B-' long-term and 'C' short-term counterparty credit ratings on the bank, while raising the Russia national scale rating to 'ruBBB' from 'ruBBB-'.
- The stable outlook reflects our expectation that the DIA will continue to provide funding support to Bank Soyuz.
MOSCOW (Standard & Poor's) Sept. 27, 2010--Standard & Poor's Ratings Services said today that it had raised its Russia national scale rating on to 'ruBBB' from 'ruBBB-' and affirmed its 'B-' long-term and 'C' short-term counterparty credit ratings. The outlook is stable.
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Regarding new arrangements for the financial recovery of the Bank “SOYUZ”
18.01.10
State Corporation Deposit Insurance Agency (DIA) announces the beginning of additional arrangements to strengthen the financial stability of the Bank “SOYUZ” implementation.
Actions taken in 2009 for financial recovery of the Bank have ensured uninterrupted corporate and private clients’ payments processing and fulfillment of Bank’s obligations and considerably reduced administrative costs. Thereby effective functioning of the Bank’s executives made possible the stabilization of the day-to-day operation of the Bank.
The recapitalization of the Bank is scheduled for the first quarter of 2010. There will be reduction of the registered capital due to additional provisioning, followed by an emission of new shares in order to increase the registered capital of the Bank. After placement of the additional issue under private subscription the registered capital will be formed anew and will reach 5 bn. rubles. The controlling stock (50% of additional issue + 1 share) will be owned by DIA, the rest – by OJSIC Ingosstrakh. In addition DIA will grant the Bank a subordinated debt for 5 years in the amount of 5 bn. rubles towards earlier provided funds and within the first quarter of 2010 will buy a part of long-term investment assets of the Bank for the amount of up to 20 bn. rubles towards some of the earlier (in 2009) provided funds. As a result the equity (total capital) of the Bank as of the end of the first quarter of 2010 will reach 7,5 bn. rubles.
In accordance with the Federal Law of Russian Federation ¹ 175-FZ from 27.10.2008 “On additional Measures to Strengthen the Stability of the Banking System through December 31, 2011” DIA has submitted to the Bank of Russia application to entrust DIA with the functions of a temporary administrator for the Bank “SOYUZ”. The appointment of the temporary administration is a measure aimed at the acceleration of the process of recapitalization in accordance with the new shareholding structure and composition. In accordance with the legislation the authority of the present executive bodies will be suspended for this period. After the increase of the registered capital the authority of the present executive bodies will be restored in full and the authority of the temporary administration will be ceased.
During the functioning of the temporary administration there will be no changes in the operation of the Bank. All clients and depositors will be able to use services provided by the Bank, including effecting payments, receiving and depositing funds, obtaining loans within opened credit lines on the agreed conditions.
The implementation of the additional arrangements will create conditions for the development of the Bank “SOYUZ” as a universal bank, working on the principles common for all the banks.
Bank SOYUZ fulfilled its obligations under put option in the event of change of control in respect of the USD 125 000 000 9.375 per cent. Loan Participation Notes due 2010
15.06.09
In accordance with the Terms and Conditions of the Notes on June 11, 2009 transferred funds for the redemption at option of the noteholders of a part of the Notes issued on February 16, 2007.
Holders exercised the put option in the amount of USD 101 531 000 from the total amount of initially issued securities of USD 125 000 000. Notes were redeemed at 101 per cent. of its principal amount together with accrued interest.
The outstanding amount of the issue due on 16th of February 2010 is USD 23 469 000 or 19% of the initial issue.
This redemption at option once again confirmed the creditworthiness of the Bank SOYUZ and shown significant loyalty of investors in respect of the Bank, which is even more valuable under circumstances of unwrapping crisis.
The sale of the controlling stake in Bank «SOYUZ» is completed
04.05.09
OJSC «Gazpromregiongaz» and LLC «Basic Element» Company» announce the completion of the deal as a result of which CJSC «Gazfinance» (100% subsidiary of OJSC «Gazpromregiongaz») has acquired 75% stake in «Bank SOYUZ».
OJSC «Gazpromregiongaz» was formed on October 1, 2004 in order to consolidate gas distribution assets of the Group of companies Gazprom, following the adoption of the concept of consolidation of OJSC «Gazprom» assets in the field of gas distribution. The abovementioned concept was approved by the Resolution ¹ 31 of the Executive Board of OJSC «Gazprom» dated May 24, 2004. Founders of OJSC «Gazpromregiongaz» are LLC «Mezhregiongaz» (holds a 99 % stake in the authorized capital) and LLC «Gazprom transgaz Sankt-Petersburg» (contributed 1% of the authorized capital), both 100% subsidiaries of OJSC «Gazprom». LLC «Mezhregiongaz» is a specialized interregional gas trade company and LLC «Gazprom transgaz Sankt-Petersburg» is a specialized main gas transportation company.
Bank Soyuz has paid back $50 mln syndicated loan
17.09.2008
Bank Soyuz has fully repaid a $50 mln syndicated loan it raised in September, 2007. The transaction was arranged by Commerzbank AG, Raiffeisen Zentralbank Osterreich AG, Raiffeisenbank Austria and Standard Bank Plc.
The Facility, which paid a margin of 1.9% per annum over LIBOR and had the tenor of 364 days was used for general financial purposes.
The transaction, which was initially launched into syndication at USD 40 mln. was well received in the market and closed oversubscribed.
The syndicate was formed by the following banks:
Mandated Lead Arrangers:
Commerzbank AG
RZB Group
Standard Bank Plc.
Lead Arrangers:
VTB Bank (Austria)
Black Sea Trade & Development Bank
Landesbank Berlin
Managers:
AKA Ausfuhrkredit
N.V. DE INDONEZISCHE OVERZEESE Bank (The Indonesian Overseas Bank), Hamburg
Branch Oberbank AG
About Bank
JSCB SOYUZ (OJSC) is a universal commercial bank, founded in 1993. After three other banks joined JSCB Ingosstrakh-Soyuz (OJSC) in 2003 it was renamed JSCB SOYUZ.
Independent rating agencies and news agencies include SOYUZ Bank in the list of 40 largest banks in Russia. According to the “Profil” magazine (¹20 (671) from 31.05.2010), as of 01.04.2010 Bank SOYUZ is on the 29th place in the list of the most reliable among the top 100 Russian banks. By 01.01.2011 the Bank’s authorized capital made up 5,0 billion rubles; assets amounted to 130,34 billion rubles.
Regional network includes 40 points of sale and covers the main industrial and cultural centers of Russia: St Petersburg, Nizhny Novgorod, Sochi, Volgograd, Ekaterinburg, Izhevsk, Irkutsk, Kaliningrad, Kazan, Krasnodar, Krasnoyarsk, Perm, Rostov-on-Don, Samara, Tomsk, Tumen. Moscow has 11 operating offices.
IFRS audit of SOYUZ financial statements is performed by CJSC Deloitte & Touche CIS.
The main businesses are retail, corporate and investment banking, and services for wealthy private customers.
SOYUZ Bank has been registered for obligatory insurance of retail deposits. It was among the first banks authorized by the State Corporation “Deposit Insurance Agency” to effect payments to depositors of bankrupt banks.
The Bank has proved its worth in the market of corporate, trade and factoring financing. The largest corporate customers include: “Hyundai Com Trans Rus”, LLC “Luding”, LLC “Korea Motor”, RUSAL Group, OJSC Agency “Rospechat”, OJSC “Agricultural Union “Kuban”, OJSC “Aviakor – aircraft plant”, IJSC “Ingosstrakh”, OJSC “Russian Machines”, OJSC “Irkutskenergo”, OJSC “Krasnoyarsk Hydro-Power Station”, OJSC “Sochi International Airport”.
It has become traditional to see rapid development of the investment business. SOYUZ Bank has an established credit record in the public financial market. After the debut 1 billion ruble issue of bonds in April 2005 the Bank continued borrowing in 2006 and placed its second issue for 2 billion rubles. At the end of 2007 the third bond issue for 2 billion rubles was registered. In 2008 SOYUZ Bank fully placed its bonds of the fourth issue, for 3 billion rubles.
In August 2005 SOYUZ Bank securitized a 49.8 million USD car loans portfolio, which was the first deal of the kind at the Russian financial market. In 2006 SOYUZ raised 164 million USD through a syndicated loan facility and the debut Eurobond issue, and 50 million USD through a syndicated loan facility in 2007.
SOYUZ Bank is a leading arranger and underwriter in the market of corporate and municipal ruble bonds.