July 27, 2005

Vnesheconombank blows out and sets new benchmark pricing for Russian loans

Bookrunners ABN AMRO, Deutsche Bank AG London (“Deutsche Bank”), and Dresdner Kleinwort Wasserstein – the investment banking division of Dresdner Bank AG (“DrKW”) have today announced the signing in Moscow of the debut $500mn Syndicated Term Loan Facility for Vnesheconombank, Russia (“VEB”), Twelve banks joined the three Bookrunners at MLA level in the senior phase syndication.

The general syndication phase was outstandingly successful and at the close of syndication commitments exceeded $600mn. Having raised more than twice the initial launch amount of US$300 million, and exceeded its funding requirements VEB elected to scale back the facility to $500mn.

The loan is a truly landmark transaction being one of the largest single unsecured loans arranged for a financial institution in Russia. Also worth noting is the margin of 90 bps – the first Russian bank syndication to obtain a margin below 100bps.

Also significant is the large syndicate which at 40 banks is also among the largest for a Russian FI borrowing. As can be seen from the below list the syndicate is made up from a geographically diverse group of banks based in Europe, Asia, North America and Middle East.

The following banks participated in the transaction:

Mandated Lead Arranger
Citigroup
Erste Bank
HSBC Bank plc
HSH Nordbank AG
HVB Group (Bank Austria Creditanstalt/ Bayerische Hypo- und Vereinsbank AG )
ICICI Bank UK Limited
ING Bank N.V.
JPMorgan Chase Bank, N.A.
Mizuho Corporate Bank, Ltd.
The Bank of Tokyo-Mitsubishi, Ltd.

Co-Arranger
LBBW Group (LRP Landesbank Rheinland-Pflaz / Landesbank Baden-Württemberg, London Branch)

Senior Lead Manager
DZ BANK AG Deutsche Zentral-Genossenschaftsbank
State Bank of India, Offshore Banking Unit, Bahrain

Lead Manager
Chinatrust Commercial Bank, Offshore Banking Branch
MashreqBank psc
Magyar Kulkereskedelmi Bank Rt.

Manager
Bank of Kaohsiung, Offshore Banking Branch
Bank Overseas Chinese, Taipei
Chang Hwa Commercial Bank Limited, London Branch
Chiao Tung Bank, Offshore Banking Branch
Emporiki Bank of Greece S.A.
Fortis Bank
Kommunalkredit International Bank Limited
National Bank of Egypt International
Persia International Bank Plc
SanPaolo IMI Bank Ireland Plc
Taiwan Cooperative Bank, Offshore Banking Branch
The International Commercial Bank of China, Offshore Banking Branch
Zürcher Kantonalbank

Participant
Banca Monte dei Paschi di Siena
Bank Hapoalim B.M.
Raiffeisenverband Salzburg
The Export-Import Bank of the Republic of China


For further information, please call:

ABN AMRO
Mark Bennewith Tel: +44 20 7678 8270

Deutsche Bank
Ben Dobson, Corporate and Investment Bank Tel: +44 20 7545 8572
Boris Jaquet, Corporate and Investment Bank Tel: +44 20 7545 7937

Dresdner Kleinwort Wasserstein
Nannette Bax-Stevens, Loan Syndicate Tel: +44 20 7475 4201
Ralf Gambietz, Loan Syndicate Tel: +44 20 7475 3198

About VEB
The Bank for Foreign Economic Affairs of the USSR, or Vnesheconombank (VEB), known until 1988 as The Bank for Foreign Trade of the USSR, was founded in 1924. It assumed all assets and liabilities of the former Bank for Foreign Trade of the USSR and is designated a specialised state bank. As such, VEB’s equity is 100% owned by the state; its primary mission being the facilitation of foreign economic affairs and the management of foreign debt and foreign assets of the former Soviet Union and now the Russian Federation.

Following the acquisition of the Eximbank of Russia, VEB also became involved in the operation of state export guarantee programmes. Since 2003 VEB was appointed by the Russian Government as the state asset management company for the Pension Fund of the Russian Federation (by the year end 2004 assets under VEB management already exceeded USD 3 billion equivalent).

According to The Banker magazine statistics, as of December 31, 2003, Vnesheconombank ranked 6th among Russia's 50 major banks in terms of tier one capital, 5th in terms of its assets and 4th in terms of the profits on average capital, while the cost/income ratio ran at 28 percent. Throughout the year 2003, the Bank reinforced its positions in the global banking system moving from 633 to 542 place in the list of 1000 major world banks.

In 2004, the Fitch rating agency raised Vnesheconombank's long-term rating to an investment 'BBB-' grade rating with stable outlook, its short-term rating - to 'F3'. The long-term and short-term foreign currency-denominated deposit ratings assigned to Vnesheconombank by Fitch Ratings are at par with the sovereign rating of Russia. The current Moody’s rating is Ba1 with positive outlook.
On 28 June 2005 Standard & Poor’s assigned VEB a ‘BBB-‘ long term foreign currency rating with a stable outlook.

About ABN AMRO
Netherlands-based ABN AMRO is a leading international bank with total assets of EUR 742.9 bln (as at 31 March 2005). It has over 3,000 branches in more than 60 countries and territories, and has a staff of about 97,000 full-time equivalents worldwide. ABN AMRO is listed on the Euronext and New York stock exchanges.

ABN AMRO operates through three Strategic Business Units, each responsible for managing a distinct client segment. Wholesale Clients provides integrated corporate and investment banking services to corporate, institutional and public sector clients worldwide. Consumer & Commercial Clients focuses on retail and SME clients in three home markets - the Netherlands, the US Midwest and Brazil and in a number of selected growth markets. Private Clients & Asset Management provides private banking services to wealthy clients and investment products to financial intermediaries and institutional clients.

About Deutsche Bank
With Euro 901 billion in assets and 64,500 employees, Deutsche Bank offers unparalleled financial services in 74 countries throughout the world. Deutsche Bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.
Deutsche Bank ranks among the global leaders in corporate banking and securities, transaction banking, asset management, and private wealth management, and has a significant private and business banking franchise in Germany and other selected countries in Continental Europe.
Deutsche Bank

About Dresdner Kleinwort Wasserstein
Dresdner Kleinwort Wasserstein (DrKW) is the investment bank of Dresdner Bank AG, a member of Allianz since July 2001. Headquartered in London and Frankfurt and with an international network including offices in the financial centres of New York and Tokyo, DrKW provides a wide range of investment bank products and services to European and international clients through its Capital Markets and Corporate Finance & Origination business lines.



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