JSC VTB Bank has signed a subordinated loan agreement with the State Corporation "Bank for Development and Foreign Economic Affairs" ("Vnesheconombank") for the amount of RUR200 billion. The loan has been obtained for up to the end of 2019 at the annual rate of 8% in accordance with the Federal Law of the Russian Federation as of October 13, 2008 N 173-FZ "On Additional Measures for Supporting the Financial System of the Russian Federation". Under the terms of this agreement, first tranche of the subordinated loan for RUR100 billion has been received from Vnesheconombank on October 23, 2008. Second tranche of the loan will be received by the end of November this year.
VTB CEO and Chairman of the Board Andrey Kostin said: "The Russian Government's decision to allocate these funds to VTB will allow us to considerably strengthen the support to the interbank market and financing of our customers in core industries in order to ensure the stability of the Russian economy".
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NOTES TO EDITORS
VTB (JSC VTB Bank and its subsidiaries) is Russia's leading comprehensive banking group, offering a full range of corporate, commercialretail and investment banking services and products across Russia, certain CIS countries and in selected countries of Western Europe, and Asia.
As of June 30, 2008, VTB Group had a network of 1,001 branches located across Russia, CIS and Europe, including 418 VTB24retail branches. Outside of Russia, the Group operates through four subsidiary banks located in the CIS (Armenia, Georgia, Ukraine and Belarus), six subsidiary banks located in Europe (UK, France, Germany, Austria, Switzerland and Cyprus), one subsidiary bank and one financial company in Africa (Angola, Namibia), and an associated bank in Vietnam. VTB also has a presence in Singapore through a branch of its UK subsidiary. VTB has operated under a full banking license, No 1,000, from the Central Bank of the Russian Federation since 1990.
The Group's business franchise is in the areas of corporate, retail and investment banking. In corporate banking, the Group provides a broad range of commercial banking services and products including corporate lending, foreign trade transactions, syndicated loans, deposit and settlement services, as well as custody services, leasing and treasury services to large- and medium-sized corporations and financial institutions. In retail banking, VTB offers financial services, including deposit accounts, lending and certain ancillary services, to individuals and smaller companies. In investment banking it provides debt capital markets underwriting, project financing, merger and acquisition financing, advisory services, asset management and venture funds.
The Group had 40,704 employees as of June 30, 2008. The Government of the Russian Federation is VTB's main shareholder and owns 77.5 % of its registered share capital. For more information please visit www.vtb.com .