FUNDSERVICEBANK

FUNDSERVICEBANK Plc is one of Russian top-100 banks. The Bank was established in August 1994 (General License No. 2989 of the Bank of Russia). Shareholders of the Bank are Korolyov Energia; Proton — Permskiye Motory (affiliated with Khrunichev Centre); Glushko Energomash; Reshetnyov Satellite Information Systems; National Institute of Aviation Technologies, STK Soyuz and RostVertol.

The Bank’s core business constituency comprises space ship and satellite producers, aircraft makers and other companies in aerospace business, science-intensive and high-tech industries. The Bank actively participates in international trade finance operations. The Bank also cooperates in programmes for support to the small- and medium-sized business. FundServiceBank also is extending its presence on domestic retail market. FundServiceBank is a member of the Federal Deposit Insurance System since 2004.

The steady growth pace of FundServiceBank clearly shows its ample development potential, which is reflected in increasing resources, growing customer segments, expanding branch network and broadening product range. The quality performance supports a strong position of the Bank within banking industry.

The international rating agency Moody's Investors Service has recently updated FundServiceBank’s global scale ratings, confirming deposit rating at B3 and financial strength rating (FSR) at E+ level with stable outlook. A Russian rating institution, National Rating Agency (NRA), has confirmed the Bank’s stability and credibility rating at A+. Another independent Russian rating centre, RusRating, supported FundServiceBank’s earlier credibility rating at BB with positive outlook. The Forbes magazine regularly places FundServiceBank among the top-100 of most stable and sound Russian banks.

The Bank’s financial statements according to International Standards of Financial Reporting (ISFR) have been audited by PriceWaterhouseCoopers since 2004.

A special concern of the Bank are financial services for technological modernisation of domestic industry. Some of Bank’s trade finance arrangements are specially tailored for the manufacturing companies which are in process of modernising their equipment, technologies and production facilities. FundServiceBank, together with subsidiaries of STK Soyuz group, has designed a unique financial solution — TurnKey Finance, a comprehensive package of commercial and financial services integrated into a single operative programme.

In trade finance operations the Bank closely cooperates with the export credit agencies, such as HERMES and AKA Export Finance Bank (Germany), ExImBank (USA), SACE (Italy), EDC (Canada), EGAP (Czech Republic), EKN (Sweden), Finnvera (Finland) etc.

The Bank operations are supported by well-established correspondent relationships within Russia, in CIS countries and overseas. Our key correspondent partners abroad are Commerzbank, Deutsche Bank Trust Company Americas, Bank of China, Raiffeisen Zentralbank, Nova Ljubljanska Banka, UBI, Intesa Sanpaolo and some others.

FundServiceBank’s network includes six branches: in St. Petersburg, Archangel, Rostov-on-Don, Novocherkassk, and two others in space centres — Baikonur (Kazakhstan) and in Mirny (newly opened branch at Plesetsk Space Centre, Archangel region). Most branches have their own clusters of local offices in their areas.

FundServiceBank is diversifying its business in three directions: first, making new relationships in high-tech and related industrial sectors; second, extending financial services to other industries and economy spheres (construction, oil and gas, agriculture and agro product processing, science-based venture companies, small- and medium-sized businesses); third, expanding the volume of retail banking. Diversification and flexible policies should help to meet current challenges and to reduce various risk exposures.

All activities of the Bank — in accordance with its mission — are oriented toward growth of national economy, increasing competitive edge of domestic companies, supporting high-tech sectors and locomotives of economic and technological modernisation.

Alexander D. Volovnik
President