CIB’s Russia and CIS business advised on a string of high profile M&A and ECM mandates in 2011 confirming its position as the No.1 international investment bank in the region. The Bank finishes 2011 – its best year since 2007 – as the No.1 international bank in Russia and CIS investment banking by fees. As of October, Deutsche Bank's market share by fees was 6.6%, according to Dealogic.
Landmark M&A mandates included joint financial advisor to VimpelCom on its USD 23bn acquisition of WIND, a transformational deal that creates a top 5 global mobile operator and was the largest EMEA M&A transaction in the telecoms sector since 2006. The Bank also advised UCL Holding on its USD 4.1bn strategic acquisition of a 75% stake in Freight One JSC in the largest M&A transaction in the Russian transportation industry transforming UCL into a national champion.
Deutsche Bank also advised Severstal on a landmark spin-off of NordGold announced at the end of November. In the financial services sector, the Bank advised Sberbank on its USD 1bn acquisition of Troika Dialog, Deutsche Bank’s second M&A mandate from Sberbank out of three deals in the past 18 months.
Andrew Chulack, Co-Head IBC&A Russia & CIS said: "Deutsche Bank has been involved in some of the largest and complex transactions this year. Clients recognise the strength of our advisory and financing franchise in Russia and reach out to Deutsche as a one-stop solution provider. In 2011, we have clearly affirmed our market leading position."
“Track record and team continuity have been key success factors in 2011 alongside local sector and product strengths,” Daniel Jacobowitz, Co-Head, IBC&A Russia and CIS, said.
“We saw the winning combination of the Bank’s strong client relationships, particularly in financial services, TMT and natural resources, fully complemented by our best-in-class Russian equity capital markets capabilities.”
In ECM, Deutsche Bank closed five out of 12 closed equity transactions (USD 300m+) in 2011 and is the No.1 ranked international bank by deal value.
Highlights include the USD 3.3bn privatisation of VTB, Russia’s largest equity deal of 2011, and the USD 1.4bn IPO of Yandex, which priced 14% higher than the top of its indicative range and was the largest US technology IPO since Google in 2004.
The VTB mandate means Deutsche Bank is the only bank to have advised VTB from its IPO in 2007 through to February’s equity offering. Polymetal’s USD 750m premium London listing was another landmark deal and the first premium listing out of Russia.
Other substantial transactions included the first post-crisis Russian bank IPO for NOMOS and a first port sector IPO for Global Ports.
Marina Kraschenko, Head of ECM, Deutsche Bank Russia, said: "Total size of Deutsche executed deals is USD 6,860m (58% of total closed deals YTD, 37% of total launched deals YTD). Such results demonstrate the high professionalism of the Deutsche team, our deep knowledge of equity capital markets as well as our ability to execute deals in a challenging market environment – competitive advantages that constitute our superiority today."
Deutsche Bank Research predicts Russian GDP will grow 4.6% in 2012. Market conditions permitting, Chulack and Jacobowitz are expecting another strong year for investment banking activity.
Jacobowitz said: "High commodity prices and GDP growth continue to underpin investor interest in Russia despite challenging global market conditions. Our focus: to build upon an already strong 2012 pipeline of advisory and capital raising mandates and execute on it in the new year.