CIS Credit Monitor: Promsvyazbank

Ananiev brothers’ stake in Promsvyazbank (B/Ba2/B+) to decline in favour of EBRD?

Today’s Kommersant newspaper reports that EBRD is likely to participate in Promsvyazbank’s RUB 5bn additional share placement in autumn 2009, while controlling shareholder Promsvyaz Capital B.V. (representing the interests of the Ananiev brothers) most likely will not participate in the placement. Therefore the foreign shareholders may hold more than 25% of capital and the share of Russian shareholders is expected to be reduced. The share placement is expected to be discussed on 12 October at the extraordinary shareholders’ meeting. We find the Promsvyazbank 2013 eurobond attractive.