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Deutsche Bank Tests New Security
Deutsche Bank Moscow has announced that it will place ruble-denominated securities on the Russian market with a new type of structure. The coupon interest in the issue will be tied to the exchange rate of the dollar. The five-year bond will have a volume of 3 billion rubles. Observers think that the bank is testing the form of security to offer it to issuers later.
Deutsche Bank Moscow is a wholly-owned subsidiary of Deutsche Bank AG and one of the largest banks on the Russian market with foreign participation. According to Dengi financial weekly, it occupied 45th place among Russian banks by the size of its capital (5.4 billion rubles) and 42nd place by the sum of its net assets (38.8 billion rubles) as of January 1 of this year.
Only the European Bank of Reconstruction and Development has placed ruble-denominated securities on the Russian market among all the large foreign financial institutions active in the country. There are three five-year issues of the bank's bonds trading now for 17 billion rubles. Observers expect the Deutsche Bank issue to be placed with approximately the same income as the EBRD issues, that is, 6.2-6.5 percent. Deutsche Bank declined to comment on the topic.
Some members of the banking community think that Deutsche Bank is trying with this issue to attract rubles for the servicing of its clients, as a more convenient means of obtaining funding than obtaining it from the parent company. Others think it is simply a new product and doubt its viability.
www.kommersant.com
All the Article in Russian as of Apr. 04, 2007
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Photo: Vadim Nekrasov
