Bank Announces Intention to Float
“Bank “Saint-Petersburg” Open Joint-Stock Company (“BSPB” or “the Company”), today announced its intention to launch a public offering of newly issued ordinary shares and unlisted global depositary receipts (“GDRs”). Shares will be offered in the Russian Federation and to investors outside the United States in offshore transactions in reliance on Regulation S of the U.S. Securities Act of 1933. Under the GDR programme, the GDRs will be offered outside the United States and the Russian Federation on the OTC market, also in reliance on Regulation S of the U.S. Securities Act of 1933. The GDR programme is expected to be terminated after the registration of placement report with respect to the newly issued ordinary shares.
The Company has applied to list its ordinary shares on the Russian Trading System (RTS) and the Moscow Interbank Currency Exchange (MICEX). New shares representing up to 18% of the Company’s post-offering share capital will be offered in the IPO, which is intended to take place before the end of the year.
The Company intends to use the proceeds from the offering to fund the growth of assets, expand its operations and for general banking purposes.
Deutsche Bank has been appointed as Sole Global Coordinator of the offering and together with Renaissance Capital are the Joint Bookrunners for the offering.
Saint Petersburg with over 4 million inhabitants is the 4th largest city in Europe. BSPB is a leading private universal bank in Saint Petersburg and Leningrad Region with 10% regional market share of loans and 9% regional market share of deposits as of 1 January 2007 with a particular strength in corporate banking which represents the majority of BSPB business.
BSPB's assets have increased since 31 December 2004, from US$599 million to US$3,267 million as at 30 June 2007. BSPB has maintained strong returns, as reflected by its return on average equity of 27% as at June 30, 2007 (on annualized basis) and 31% as at 31 December 2006, and cost to income ratio of 39% and 43% as of 30 June 2007 and 31 December 2006 respectively.
Commenting on the offering, Indrek Neivelt, Chairman of BSPB’s Supervisory Board, said:
“We believe BSPB will be the first Russian regional bank to conduct an IPO. We do business in one of Russia’s fastest growing regions, fuelled by its expanding industrial activity, the continuing relocation of the headquarters of some of Russia’s leading companies, growing tourism, and a region which is still underbanked.”
Alexander Saveliev, the Company’s CEO, added:
“We are the leading independent bank in the St. Petersburg region, with a track record of profitability and growth. We have a total of 29 branches and outlets, around half a million retail and 30,000 corporate customers. This IPO will enable us to further strengthen our capital base and support our ongoing expansion, building on the solid foundation that we have established over the last 17 years.”