Credit Bank of Moscow completes IPO

07/01/2015
July 1, 2015 Moscow, Russia - CREDIT BANK OF MOSCOW (open joint-stock company) ("CBM" or the "Bank"), announced today that it had completed the initial public offering ("IPO", the "Offering'). CBM raised RUB 13.2 billion based on the offer price of RUB 3.62 per share. CBM's market capitalization reached RUB 70.2 billion. As a result of the Offering, Bank's free float of the shares will stand at circa 18.8%. IPO was held on the Moscow Exchange. Bank’s shares were included into Level 1 (Highest) Quotation List.
ATON Investment Company acted as a co-lead manager of the Offering. Agaron Papoyan, Partner, Managing Director of Corporate Finance Department at ATON, commented: “CBM is one of the largest Russian private banks in terms of assets. ATON Clients demonstrated high interest to the Offering: 388 private and several institutional investors took part in the IPO”. 
 
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CREDIT BANK OF MOSCOW (CBM) is one of the leading privately owned universal banks in Russia, and focuses on providing banking products and services to corporate customers and individuals in Moscow and the Moscow Region. CBM’s corporate banking business is primarily focused on retail and wholesale trading corporate customers, enabling CBM to capitalize on the Russian consumer market. CBM’s retail business is focused on consumer loans to high quality retail customers, with a particular emphasis on cross-sales of retail products to the employees and clients of its corporate customers.
CBM offers a comprehensive range of banking services, including lending, deposit-taking, cash handling, international settlements, trade finance, guarantees and other products. By leveraging its leading cash handling service and payment terminal network, the Bank is able to monitor the cash flows and payment histories of its customers as well as, in the case of many of its retail customers, their employers, which ensures strong portfolio performance and asset quality.
According to INTERFAX-100, as at 1 April 2015, CBM is one of the top five privately owned Russian banks, measured by total assets. According to IFRS, as at 31 March 2015, CBM had assets of RUB 581.7 bln and equity of RUB 61.2 bln. Its Tier 1 capital ratio according to Basel III was 10.4% and its total capital ratio 15.8%. Nonperforming loans (NPL 90+) stood at 2.4%. The Bank’s net profit for 1Q2015 was RUB 0.3 bln, representing a return on assets (ROAA) of 0.2%, with a return on equity (ROAE) of 1.9%.  CBM has a successful record in international capital markets, with an initial issue of Eurobonds in 2006.  The Bank is currently rated BB- with a Negative outlook by S&P; B1 with a Stable outlook by Moody's; and BB with a Negative outlook by Fitch.
CBM was founded in 1992 and acquired by Mr. Roman Avdeev in 1994. Mr. Avdeev beneficially owns 70.0% of CBM’s shares. The European Bank for Reconstruction and Development, International Finance Corporation (IFC) and RBOF Holding Company I, Ltd. (100% owned by the IFC Russian Bank Capitalization Fund belonging to the same group of companies as the IFC) hold 11.2% of CBM’s shares and are represented on CBM’s Supervisory Board alongside with four independent non-executive directors. The free float now comprises 18.8% of the shares in issue.
 
ATON is the oldest independent investment group in Russia and has been active in financial markets since 1991. The Company provides a full spectrum of services to private, corporate, institutional and international investors. ATON has branches in 8 regions, works with over 40 partners and is represented in 35 Russian cities. Currently, the company has approximately 73,000 clients. ATON has representative offices in the Switzerland, Kazakhstan and Cyprus. ATON has an AAA credit rating (the highest reliability category) from the National Rating Agency and an international rating from Moody’s Investors Service – B2 long and short term foreign currency deposit rating; its national rating under Moody’s Interfax is Baa1.ru. ATON was named Investment Company of the Year 2014.
 

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