MDM Bank Syndicated Loan

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Sibacadembank (SAB) is planning to raise a senior A/B loan of USD 60 m, of which USD 20 m (A loan) will be the EBRD portion and USD 40 m (B loan) will be syndicated to commercial banks. The project is aimed to assist SAB in raising a syndicated loan beyond the 12 months horizon available to SAB at present. The proceeds will be used for SME and retail lending, which are the main business lines of the bank. EBRD is also considering acquisition of a1.05% stake of SAB in 2007, once it is merged with Uralvneshtorgbank. This project further enhances the transition impact made by EBRD through assisting the development of a leading regional bank in the Siberian Federal District (SFD). This project will be the first syndicated loan to a Russian regional bank for maturity of more than 12 months. The proposed project will assist SAB to: a) reduce refinancing risk and secure a longer term amortising facility; and b) diversify its funding base. Both of these factors are increasingly important as SAB seeks to compete with its larger state-owned and Moscow-headquartered competitors. SAB is a universal regional bank established in 1990 in Novosibirsk and operating across the largest private banking network in SFD and the Russian Far East. At end-2005 SAB was ranked 40th and 44th in terms of total assets and equity respectively among the Russian banks. SAB has B1/Positive rating from Moody’s and B/Stable from Fitch. EBRD will provide SAB with an A loan of USD 20 m. Senior A/B loan of USD 60 m, of which USD 20 m (A loan) will be the EBRD portion and USD 40 m (B loan) will be syndicated to commercial banks. SAB adopted EBRD’s Environmental Procedures for Intermediated Finance through Local Banks in the full range of its commercial lending activities. SAB is also in full compliance with applicable national environmental, health and safety requirements and adheres to the Environmental Exclusion and Referral List. None. Mr. Ilia Mitelman, Deputy Chairman of the Management Board Tel: + 7 495 9357261 Fax: + 7 495 9357261 Email: Mitelman@mtbank.ru