ZAO Raiffeisenbank Austria receives a 2-year US$180mn SyndicatedLoan.

ZAO Raiffeisenbank Austria, announced the signing of the USD 180 mln 2-year syndicated loan. The facility, which was initially launched at USD 100 mln, was heavily oversubscribed to reach USD 180 mln.

The loan is a landmark transaction given the size and tenor. Raiffeisenbank secured funds at a record low margin of 1.35% p.a. for the first year and 2.35% p.a. for the second year. The facility will be repaid in bullet.

Michel Perhirin, Chairman of the Managing Board of Raiffeisenbank was positive about the syndication results and remarked:“The success ofthe deal proves the achievements of Raiffeisenbank in Russia are recognized in the international markets. The Bank enjoys long-standing relationships with an extensive network of international financial institutions. Attracted funds will be used to finance our growingloan portfolio, that exceeded USD 1.53 bln (as of August 16, 2004), and the Bank’s corporate customer base will reach 3000 companies by theyear-end. The number of clients is going to broaden substantially with our regional development plans and our new MSE sector financing programme launched beginning 2004”.

The loan was arranged by Deutsche Bank AG London (“Deutsche Bank”),Sumitomo Mitsui Banking Corporation Europe Limited (“SMBCE”) and WestLBAG, London Branch (“WestLB”). Besides the Mandated Lead Arrangers,sixteen international banks joined the syndicate: Commerzbank (Eurasija) SAO, Erste Bank der Oesterreichischen Sparkassen AG, HSH Nordbank AG, and WGZ-Bank Westdeutsche Genossenschafts-Zentralbank EG, as Senior Lead Arrangers; Raiffeisenlandesbank Oberösterreich Aktiengesellschaft,Mizuho Corporate Bank Nederland N.V., Mashreqbank PSC, and Garantibank International N.V., as Arrangers; American Express Bank Ltd, and Landesbank Baden-Württemberg, London Branch as Co-Arrangers; Ahli UnitedBank (UK) Plc Alpha Bank A.E., London Branch, Wachovia Bank, and National Association, as Senior Lead Managers; SparisjóđabankiĺslandsHF.– Icebank, Arab Bank AG, and State Bank of India, Frankfurt Branch,as Managers.

Deutsche Bank and WestLB were joint bookrunners of the facility, whilst SMBCE is facility and documentation agent.

ZAO Raiffeisenbank Austria, a member of the RZB Group, is a universal bank with operations equally focused on commercial, retail and investment banking activities. It has operated in Russia since 1996 offering a wide range of services to companies and private clients.Currently, the Bank disposes of 9 branches in Moscow, a regional branch in St. Petersburg, a leasing subsidiary, a non-state pension fund“Raiffeisen” and OOO“Raiffeisen Capital“ Asset Management Company“.

The Bank ranks 12th among the largest Russian banks by assets and 11th in terms of profitability based on H1 2004 results (RA Interfax). Raiffeisenbank continues to sustain leading positions in corporate banking with the credit portfolio over USD 1,27 bln according toH1 2004 results meaning an increase of 24,8% from USD 1,01 bln as of 2003 year-end with corporate customer base reflecting substantial growth as well and counting more than 2800 clients.

Raiffeisenbank, increasingly active on the corporate finance market, was ranked 2nd within Russian Corporate Bond Lead Managers in 2003 (RA Cbonds.ru), and participated in 13 rouble bond primary placement syndicates of total volume of about USD 750 mln.

In syndications’ market, during 2001-2003 the Bank acted as an arrangerof a number of syndicated loans to Russian borrowers in the sphere of retail trade, energy sector, metallurgy, commercial real estate and banking totalling to over USD 1.4 bln of which USD 550 mln was in 2003.

Retaining the position of a leading foreign bank on the local market Raiffeisenbank is ranked 8th in terms private deposits among retail banks in Russia with private deposit base of more than USD 532 mln (RA Interfax, H1 2004 results). The Bank is also the 4th largestbank in Russia in terms of consumer lending (Interfax as of H1 2004), the private loan portfolio amounting to USD 219 mln, which illustrates 54,2% growth from 2003 year-end figure (USD 142 mln).

The latest Vox Populi independent poll results on general public’sopinion (published in the Nezavisimaya newspaper, July 2004) showed Raiffeisenbank is considered 3rd best reliable bank in both Moscow and regions with only two state-owned banks ranked 1st and 2nd.