According to Vneshtorgbank‘s head Andrei Kostin, the bank may carry out its initial public offering this year, depending on the pace of Promstroibank‘s consolidation. Some US$4 billion is expected to be attracted through the share issue. If Vneshtorgbank does not manage to wrap up Promstroibank’s consolidation in 2006, the bank’s IPO may be carried out some time in Q1/2007. Kostin said that if the bank’s main shareholder, the Russian government, agrees, the offering might be carried out on both domestic and foreign markets. The government is to make its decision in April. The bank’s head added that Vneshtorgbank may increase its capital through budgetary funds or through issuing bonds. The shortage of funds excludes buying out other banks in 2006, said Kostin. According to Vneshtorgbank’s senior v.p. Denis Ursulyak, the bank plans to issue international securities linked with the performance of the Russian ruble in March. The newly introduced instrument is to give investors an opportunity of assuming risks linked with the Russian currency’s performance. The volume of the offering is not yet determined. Ursulyak only said that the issue will have a three-year maturity. Citibank and Barclay‘s are to be the issue’s organizers.
