25.05.2007

Pivdennyi Bank, Ukraine has signed a USD 45,000,000. Trade-related Syndicated Term Loan Facility

23.05.2007 PRESS RELEASE
Pivdennyi Bank (�Pivdennyi� or the �Borrower�) is pleased to announce that it has signed a US$ 45,000,000 Syndicated Term Loan Facility, arranged by Landesbank Berlin AG (�LBB�), Standard Bank Plc (�SB�) and JSC VTB Bank (�VTB�) on May 22nd, 2007. The proceeds of the Facility will be used to finance trade-related purposes.

Summary details of the transaction:

Borrower:	Pivdennyi Bank
Amount:	USD 45,000,000
Tenor:	364 days with a further 364 days extension option
Margin:	260 bps p.a.
Repayment:	Bullet
MLAs:	LBB, SB & VTB
Bookrunners:	LBB, SB & VTB
Documentation Agent :	Standard Bank Plc
Facility Agent:	Standard Bank Plc

Due to the considerable oversubscription the Borrower has decided to increase the facility
amount from US$ 30 million to US$ 45 million.

Parties to the Facility Agreement:
Mandated Lead Arrangers Landesbank Berlin AG
Standard Bank Plc
JSC VTB Bank

Senior Arrangers Black Sea Trade & Development Bank
Commerzbank AG

Co-Arranger FBN Bank (UK) Ltd.
VTB Bank Europe Plc

Lead Manager American Express Bank Ltd.
The Bank of New York
Trade & Development Bank of Mongolia

17.05.2007

Pivdennyi Bank has repaid it's debut USD[25,000,000] syndicated loan.

USD[25,000,000] syndicated trade related term loan facility agreement was executed last year between Pivdennyi Bank,

Bank Austria Creditanstalt AG and Landesbank Berlin AG as MLAs and original lenders.

The loan was attracted for 6 months tenor at low 2,85% margin with a six month extension option.

The attracted funds were used to finance foreign trade contracts of the Bank�s customers.

Successful completion of the given deal became the next step in Bank's track records for International Debt and Capital markets.

07.05.2007

MOODY'S announces bank rating actions for Ukraine

04:26 05May2007 RTRS-MOODY'S ANNOUNCES BANK RATING ACTIONS FOR UKRAINE RESULTING FROM IMPLEMENTATION OF JDA AND BFSR METHODOLOGIES

BFSRs evaluate the stand-alone or intrinsic financial strength of banks without reference to external support factors. BFSRs are the starting point of Moody's bank credit analysis, and are an important determinant of Moody's bank deposit and debt ratings.

Moody's then uses its JDA methodology to incorporate the potential for external support into a bank's local currency deposit rating. The potential for external support can reduce the riskiness of a bank's deposit and debt obligations; however, such support is often uncertain. Moody's uses conservative support assumptions and a limited number of support levels to ensure that sufficient weight is given to a bank's intrinsic financial strength in its bank deposit and debt ratings.

Moody's uses deposit ratings to determine bank debt ratings based on its notching guidelines for bank securities. Ratings for foreign currency obligations are determined after considering Moody's country ceilings for foreign currency ratings.

The methodologies are being implemented country by country, with results being announced on a weekly basis. Results for those banks with a parent bank located in another country where the methodologies have not yet been implemented will be concluded at the same time as the parent.

Moody's has completed the review on the ratings of 22 Ukrainian banks, with the result being the affirmation of all BFSRs. However, five Ukrainian banks' deposit, debt, or national scale ratings were upgraded as a result of the banks' improving financial fundamentals and evolving franchises, and two banks' ratings were downgraded due to their weakening market positions.

The implementation of the methodologies for Ukrssibbank, Calyon Bank Ukraine and Index Bank has not been concluded and requires the conclusion of the ratings review process for these banks' parents: BNP Paribas, the parent of Ukrssibbank, and Credit Agricole, the parent bank of Calyon Bank Ukraine and Index bank.

This press release lists the names of bank issuers in Ukraine whose ratings have been changed, affirmed or put on review. To view all ratings changes and other documents explaining Moody's bank rating methodologies, please go to www.moodys.com/JDABanks.

Below is the list of banks with ratings that have been upgraded:

Alfa Bank Ukraine — The BFSR is unchanged at E+. The Local Currency Deposit Ratings are upgraded to Ba3/NP from B1/NP. The Foreign Currency Deposit Ratings are unchanged at B2/NP. The long-term National Scale Rating is upgraded to Aa1.ua from Aa2.ua. The Local Currency Senior Unsecured Debt Rating is upgraded to Ba3 from B1. The National Scale Rating for Local Currency Debt is upgraded to Aa1.ua from Aa2.ua. The Foreign Currency Senior Unsecured Debt Rating is upgraded to Ba3 from B1.The outlook on the Foreign Currency Deposit Ratings is Positive; the outlook on all the bank's other ratings is Stable.

Bank Nadra — The BFSR is unchanged at E+. The Local Currency Deposit Ratings is assigned at Ba3/NP. The Foreign Currency Deposit Ratings are unchanged at B2/NP. The Foreign Currency Senior Unsecured Debt Rating is upgraded to Ba3 from B1. The outlook on all of the bank's ratings is Positive.

First Ukrainian International Bank, CJSC — The BFSR is unchanged at E+. The Local Currency Deposit Ratings are upgraded to B1/NP from B2/NP. The Foreign Currency Deposit Ratings are unchanged at B2/NP. The long-term National Scale Rating is upgraded to Aa2.ua from A1.ua. The Foreign Currency Senior Unsecured Debt Rating is upgraded to B1 from B2. The outlook on Foreign Currency Deposit Ratings is Positive; the outlook on all of the bank's other ratings is Stable.

Forum Bank — The BFSR is unchanged at E+. The Local Currency Deposit Ratings are upgraded to B1/NP from B2/NP. The Foreign Currency Deposit Ratings are unchanged at B2/NP. The long-term National Scale Rating is upgraded to Aa3.ua from A1.ua. The Foreign Currency Senior Unsecured Debt Rating is upgraded to B1 from B2. The outlook on Foreign Currency Deposit Ratings is Positive; the outlook on all of the bank's other ratings is Stable.

Rodovid Bank — The BFSR is unchanged at E+. The Local Currency Deposit Ratings are unchanged at B3/NP. The Foreign Currency Deposit Ratings are
unchanged at B3/NP. The long-term National Scale Rating is upgraded to Baa1.ua from Baa2.ua. The Local Currency Senior Unsecured Debt Rating is unchanged at B3. The National Scale Rating for Local Currency Debt is upgraded to Baa1.ua from Baa2.ua. The outlook on Foreign and Local Long-Term Deposit and Debt ratings is Positive and is Stable on the E+ BFSR.

Below is the list of banks with ratings that have been downgraded:

Khreschatyk Bank — The BFSR is unchanged at E+. The Local Currency Deposit Ratings are downgraded to B3/NP from B2/NP. The Foreign Currency Deposit Ratings are downgraded to B3/NP from B2/NP. The long-term National Scale Rating is downgraded to Baa1.ua from A3.ua. The outlook on all of the bank's ratings is Stable.

Pravex-Bank Joint-Stock Commercial Bank — The BFSR is unchanged at E+. The Local Currency Deposit Ratings are assigned at B3/NP. The Foreign Currency Deposit Ratings are downgraded to B3/NP from B2/NP. The long-term National Scale Rating is downgraded to Baa2.ua from A3.ua. The Local Currency Senior Unsecured Debt Rating is downgraded to B3 from B2. The National Scale Rating for Local Currency Debt is downgraded to Baa2.ua from A3.ua. The outlook on all of the bank's ratings is Stable.

Below is the list of banks which have been assigned new local currency deposit ratings or new national scale ratings:

Bank Finance and Credit Ltd — The BFSR is unchanged at E+. The Local Currency Deposit Ratings are assigned at B2/NP. The Foreign Currency Deposit Ratings are unchanged at B2/NP.The long-term foreign currency senior unsecured debt rating is affirmed at B2. The long-term National Scale Rating assigned is A2.ua. The outlook on all of the bank's ratings is Stable.

Bank NRB — The BFSR is unchanged at E+. The Local Currency Deposit Ratings are assigned at B2/NP. The Foreign Currency Deposit Ratings are unchanged at B2/NP. The long-term National Scale Rating is unchanged at A1.ua. The outlook on the BFSR is Stable; the outlook on the bank's Local Currency Deposit Ratings and Foreign Currency Deposit Ratings is Positive.

Kreditprombank — The BFSR is unchanged at E+. The Local Currency Deposit Ratings are assigned at B1/NP. The Foreign Currency Deposit Ratings are
unchanged at B2/NP. The long-term National Scale Rating assigned is Aa3.ua. The outlook on BFSR and Local Currency Deposit Ratings is Stable; the outlook on Foreign Currency Deposit Ratings is Positive.

Pivdennyi Bank, JSCB — The BFSR is unchanged at E+. The Local Currency Deposit Ratings are assigned at B1/NP. The Foreign Currency Deposit Ratings are unchanged at B2/NP. The long-term National Scale Rating assigned is Aa3.ua. The outlook on BFSR and Local Currency Deposit Ratings is Stable; the outlook on Foreign Currency Deposit Ratings is Positive.

TAS-Kommerzbank — The BFSR is unchanged at E+. The Local Currency Deposit Ratings are unchanged at B2/NP. The Foreign Currency Deposit Ratings are unchanged at B2/NP. The long-term National Scale Rating assigned is at A2.ua. The outlook on BFSR is Stable; the bank's Local Currency Deposit Ratings as well as National Scale Rating remain on review for possible upgrade, while the Foreign Currency Deposit Rating carries a Positive outlook.

Ukreximbank — The BFSR is unchanged at D-. The Local Currency Deposit Ratings are assigned at Baa2/P-2. The Foreign Currency Deposit Ratings are unchanged at B2/NP. The Foreign Currency Senior Unsecured Debt Rating is unchanged at Ba2. The Foreign Currency Subordinated Debt Rating is unchanged at Ba2. The outlook on Foreign Currency Deposit and Debt Ratings is Positive; the outlook on all of the bank's other ratings is Stable.

Ukrgasbank — The BFSR is unchanged at E+. The Local Currency Deposit Ratings are assigned at B2/NP. The Foreign Currency Deposit Ratings are unchanged at B2/NP. The long-term National Scale Rating is assigned at A2.ua. The outlook on all of the bank's ratings is Stable.

VAB-Bank — The BFSR is unchanged at E+. The Local Currency Deposit Ratings are assigned at B2/NP. The Foreign Currency Deposit Ratings are unchanged at B2/NP. The long-term National Scale Rating is assigned at A1.ua. The outlook on the bank's BFSR is stable, the outlook on all other ratings is positive.

Below is the list of banks whose ratings have not changed:

Credit Dnepr Bank — The BFSR is unchanged at E+. The Foreign Currency Deposit Ratings are unchanged at B3/NP. The long-term National Scale Rating is unchanged at Baa3.ua. The Local Currency Senior Unsecured Debt Rating is unchanged at B3. The National Scale Rating for Local Currency Debt is unchanged at Baa3.ua. The outlook on all of the bank's ratings is Stable.

DonGorBank, CJCS — The BFSR is unchanged at E+. The Local Currency Deposit Ratings are unchanged at B2/NP. The Foreign Currency Deposit Ratings are unchanged at B2/NP. The long-term National Scale Rating is unchanged at A3.ua. The National Scale Rating for Local Currency Debt is unchanged at A3.ua. The outlook on all of the bank's ratings is Stable.

Industrialbank, JSCB — The BFSR is unchanged at E+. The Local Currency Deposit Ratings are unchanged at B3/NP. The Foreign Currency Deposit Ratings are unchanged at B3/NP. The long-term National Scale Rating is unchanged at Baa2.ua. The outlook on all of the bank's ratings is Stable.

Privatbank Commercial Bank CJSC — The BFSR is unchanged at D-. The Local Currency Deposit Ratings are unchanged at Baa3/P-3. The Foreign Currency
Deposit Ratings are unchanged at B2/NP. The Foreign Currency Senior Unsecured Debt Rating is unchanged at Ba2. The Foreign Currency Subordinated Debt Rating is unchanged at Ba3. The National Scale Rating is unchanged at Aaa.ua. The outlook on Foreign Currency Deposit Ratings is Positive; the outlook on the foreign currency subordinated debt rating is positive; the outlook on all of the bank's other ratings is Stable.

Raiffeisen Bank Aval — The BFSR is unchanged at D-. The Local Currency Deposit Ratings are unchanged at Baa1/P-2. The Foreign Currency Deposit Ratings are unchanged at B2/NP. The National Scale Rating is unchanged at Aaa.ua. The Local Currency Senior Unsecured Debt Rating is unchanged at Baa1. The National Scale Rating for Local Currency Debt is unchanged at Aaa.ua. The outlook on Foreign Currency Deposit Ratings is Positive; the outlook on all of the bank's other ratings is Stable.

TAS-Investbank — The BFSR is unchanged at E+. The Local Currency Deposit Ratings are unchanged at B2/NP. The Foreign Currency Deposit Ratings are
unchanged at B2/NP. The long-term National Scale Rating is unchanged at A3.ua. The Local Currency Senior Unsecured Debt Rating is unchanged at B2. The National Scale Rating for Local Currency Debt is unchanged at A3.ua. The outlook on BFSR is Stable; the bank's Local Currency Deposit and Debt Ratings as well as National Scale Rating and National Scale Rating for Local Currency Debt remain on review for possible upgrade, while the Foreign Currency Deposit Rating carries a Positive outlook.

Ukrsotsbank — The BFSR is unchanged at D-. The Local Currency Deposit Ratings are unchanged at Ba1/NP. The Foreign Currency Deposit Ratings are unchanged at B2/NP. The long-term National Scale Rating is unchanged at Aa1.ua. The Local Currency Senior Unsecured Debt Rating is unchanged at Ba1. The Foreign Currency Senior Unsecured Debt Rating is unchanged at Ba3. The outlook on Foreign Currency Deposit Ratings and BFSR is Positive; the outlook on all of the bank's other ratings is Stable.

ABOUT MOODY'S BANK RATINGS

Bank Financial Strength Rating

Moody's Bank Financial Strength Ratings (BFSRs) represent Moody's opinion of a bank's intrinsic safety and soundness and, as such, exclude certain external credit risks and credit support elements that are addressed by Moody's Bank Deposit Ratings. Bank Financial Strength Ratings do not take into account the probability that the bank will receive such external support, nor do they address risks arising from sovereign actions that may interfere with a bank's ability to honor its domestic or foreign currency obligations. Factors considered in the assignment of Bank Financial Strength Ratings include bank-specific elements such as financial fundamentals, franchise value, and business and asset diversification. Although Bank Financial Strength Ratings exclude the external factors specified above, they do take into account other risk factors in the bank's operating environment, including the strength and prospective performance of the economy, as well as the structure and
relative fragility of the financial system, and the quality of banking regulation and supervision.

Global Local Currency Deposit Rating

A deposit rating, as an opinion of relative credit risk, incorporates the Bank Financial Strength Rating as well as Moody's opinion of any external support. Specifically, Moody's Bank Deposit Ratings are opinions of a bank's ability to repay punctually its deposit obligations. As such, Moody's Global Local Currency Bank Deposit Ratings are intended to incorporate those aspects of credit risk relevant to the prospective payment performance of rated banks with respect to local currency deposit obligations, and includes: intrinsic financial strength and both implicit and explicit external support elements. Moody's Bank Deposit Ratings do not take into account the benefit of deposit insurance schemes which make payments to depositors, but they do recognize the potential support from schemes that may provide assistance to banks directly.

Foreign Currency Deposit Rating

Moody's ratings on foreign currency bank obligations derive from the bank's local currency rating for the same class of obligation. The implementation of JDA for banks can lead to a high local currency ratings for certain banks, which could also produce high foreign currency ratings. Nevertheless, it should be reminded that foreign currency deposit ratings are in all cases constrained by the country ceiling for foreign currency bank deposits. This may result in the assignment of a
different, and typically lower, rating for the foreign currency deposits relative to the bank's rating for local currency obligations.

Foreign Currency Debt Rating

Foreign currency debt ratings are derived from the bank's local currency debt rating for the same class of obligation. In a similar way to foreign currency deposit ratings, foreign currency debt obligations may also be constrained by the country ceiling for foreign currency bonds and notes, however, in some cases the ratings on foreign currency debt obligations may be allowed to pierce the foreign currency ceiling. A particular mix of rating factors are taken into consideration in order to
assess whether a foreign currency bond rating pierces the country ceiling. They include the issuer's global local currency rating, the foreign currency government bond rating, the country ceiling for bonds and the debt's eligibility to pierce that ceiling.

National Scale Rating

National scale ratings are intended primarily for use by domestic investors and are not comparable to Moody's globally applicable ratings; rather they address relative credit risk within a given country. An Aaa rating on Moody's National Scale indicates an issuer or issue with the strongest creditworthiness and the lowest likelihood of credit loss relative to other domestic issuers. National Scale Ratings, therefore, rank domestic issuers relative to each other and not relative to absolute default risks. National ratings isolate systemic risks; they do not address loss expectation associated with systemic events that could affect all issuers, even those that receive the highest ratings on the National Scale.

Provided by Reuters

17.04.2007

Market takes Ukrainian political unrest in its stride as record deals continue to price

Political troubles in Ukraine did not dampen spirits in the loan market this week, with the launch of one new deal and the closure of successful transactions highlighting the optimism investors have shown about business in the country.

Last week President Viktor Yushchenko announced plans to dissolve parliament and called for early elections on May 27, sparking demonstrations and riots in the capital, Kiev.
But the political disruptions have so far not affected deals in the market.
A $150m two year debut loan for Raiffeisen Bank Aval, arranged by BayernLB, DZ Bank, HSBC and Standard Bank, will be increased to $500m following a big oversubscription. The facility, which pays a margin of 220bp, was launched on March 16 and will be signed next Friday.
The transaction also set a new record as the first two year deal by a Ukrainian bank.
Among other deals completed this week, mandated lead arrangers Deutsche Bank and Standard Bank closed syndication of a $325m one year facility for state owned Ukreximbank, which will be signed on April 19.
The deal raised over $350m in syndication and was increased from the launch amount of $100m. Investors were not discouraged by the narrow pricing of the deal, which paid a margin of 80bp and which set a benchmark as the tightest ever on a loan for a Ukrainian financial institution � Ukreximbank was last in the market in 2003 with a $20m six month loan which paid 350bp.
"Syndication went remarkably well despite the fact the bank is owned by the state, which could have affected the deal," said one banker close to the transaction.
Concerns about political unrest in Ukraine did not stop new deals from coming to market either. The $30m one year loan for Bank Pivdennyi was launched into syndication by mandated lead arrangers Landesbank Berlin, Standard Bank and VTB Bank. The transaction pays a margin of 260bp, and refinances a $33m debut loan signed in March 2006.
Banks are being offered senior arranger tickets of $4m paying 100bp, $3m arranger tickets at 80bp, $2m co-arranger tickets at 70bp and $1m lead manager tickets at 60bp.
"New entrants in Ukraine might be deterred from committing big amounts," said one syndicated loans banker. "But it hasn�t affected deals, and won�t deter investors who understand the country. The market has been tested before, with the Orange Revolution in 2004 and with the hike in gas and oil prices." On January 1 2006, Russia briefly cut gas supplies to Ukraine following a dispute over price rises. Supplies were renewed after Ukraine agreed to an increase of 40% in gas prices, which is followed by another 40% increase this year.
But despite the political volatility in Ukraine, investors are still confident that the flow of deals to come out of the country since January this year will continue.
"It is highly unlikely that the loan market will be affected by the troubles," said another banker. "Banks have become used to dealing with political risk in Ukraine, and have come out of it unscathed before."

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Print version of letter on www.euroweek.com

23.03.2007

Pivdenny Bank plans to open branch and 12 new outlets

At present there are following outlets at a stage of opening :

• Outlet No 10, in a Dnepropetrovsk to the address of: 2, Malinovskogo str.
• Outlet No 1 in Lvov to the address of: 52, Ak. Sakharova str.

Pivdennyi Bank plans to open a new outlets in Ukraine up to II quarter of 2007

• Outlet No 2 of Zaporozhie Branch by address of Vol�nyansk, 5, Krasnoarmeyskaya str. Outlet No 9 of Kiev Branch by address of Kiev region, Chernigov, 36, Schorsa str.
• Outlet No 34 in Belgorod – Dnestrovsk to the address of 44, Lenina str..
• Outlet No 4 in Illichevsk to the address of 2, Pervogo maya str.
• Outlet No 6 in Kerch to the address of 15, Sovetskaya str.
• Outlet No 1 of Kirovograd Branch by address of 1a, 50 let Oktyabrya str.
• Outlet No 3 of Zaporozhie Branch by address of 51, Perspektivnaya str.
• Outlet No 4 of Zaporozhie Branch by address of 26, Marshala Sudtsya str.
• Outlet No 36 in Odessa to the address of 25, Chapaevskaya diviziya str., "City 25".

In III quarter the Bank plans to open branch in a Donetsk to the address of: Pushkin's parkway, 2 and outlet No35 in Odessa to the address of: 67, Preobrazhenskaya street.

Opening of the given outlets and branch is the important stage in strategy of filial development of Pivdennyi Bank which basic purpose – granting of qualitative services as is possible for a lot of clients irrespective of their geographical location.
The Bank guarantees an individual approach to each client, efficiency and a high degree of service.

All outlets and a Bank branch will give a wide complex of banking services to physical and juridical persons, in particular:
– account management of physical and juridical persons;
– reception of deposits of physical persons;
– reception of monetary proceeds from juridical persons, businessmen;
– reception of money resources from physical persons for realization of municipal and other payments and transfers;
– uncommercial operations with currency values;
– operations with payment cards and many other things.

Today 100 outlets and bank branches of Pivdennyi Bank fruitfully work in Ukraine.