Turnover in Bank ZENIT Deals in MICEX Stock Market Increased 2.2 Times in 2004 Exceeding RUR42 billion
The turnover in Bank ZENIT deals in the MICEX stock market in 2004 exceeded RUR42 billion while the turnover in its futures deals in the fixed-term contract market exceeded RUR4 billion. Thus, the Bank's turnover in the MICEX stock market increased 2.2 times during the year while the turnover in the fixed-term contract market increased 3.3 times.
The Bank's experts are experienced in investment portfolio management and can work not only in a booming but also in an unfavourable market. The latter was demonstrated by two general bank management funds (GBMF) which were operating successfully throughout the year. Net asset value in the Bank's GBMF increased to RUR783 million during the past year (RUR662 million in the Dokhodny Fund, and RUR121 million in the Universalny Fund). In 2004, profitability in the Dokhodny Fund (an aggressive management strategy) amounted to 31.29% p.a. while the Universalny Fund (a low-risk management strategy) recorded a profitability of 14.61% p.a. At the same time, the RTS index increased only by 8.26%.
Arranging debt financing continued to be a priority for Bank ZENIT in 2004. The Bank has long been among Russia's largest lead managers of bond issues and become a reliable partner for its clients in the implementation of large-scale debt programmes. Last year, the Bank became a lead manager of bond issues totalling RUR6,400,000,000 (nominal value) for several companies, including Salavatnefteorgsintez, Krasny Vostok, Nafis Cosmetics, and Ak Bars, and participated in 15 bond issues whose nominal value was above RUR43 billion.
As estimated by Roman Pivkov, Head, Debt Financing Office, «placement of the Bank's first rouble-denominated issue in the amount of RUR1 billion at a rate attractive for the Bank (8.69%) was one of the most significant events of the year. The widest possible range of investors and a large-scale support in the secondary market facilitated a high liquidity of the issue and ensured the lowest drop relative to other bank securities during the summer banking crisis».
Obtaining an unsecured syndicated loan of $20 million at LIBOR+3% was another infallible success of the Bank.
As an official member, Bank ZENIT also participated in 8 Eurobond issues. These bonds whose total nominal value was over $1.7 billion were issued by corporate issuers from Russia, Ukraine and Kazakhstan, and it was the most representative participation in such issues over the history of Bank ZENIT.
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