International Banking and Financial Institutions

Over the past few years, Alfa-Bank has been able to significantly increase the scope of its operations in domestic and foreign settlements, money market, and trade and project finance activities. By utilizing considerable credit lines established for Alfa-Bank by International Financial Institutions, the Bank was able to secure the leading position among Russian private banks in all major areas of the interbank business.

Apart from expanding the number of international banks, which consider Alfa-Bank as their key relationship in the Russian Federation, the Financial Institutions Division was instrumental in arranging close to US$ 2 billion of international term funding for Alfa-Bank’s treasury and corporate clients. In 2006 three large syndicated loans of US$ 438 million, US$ 220 million and US$ 340 million, were arranged for the Bank’s proprietary funding. The largest syndicated loan ever, in the amount of US$ 900 million, was arranged in July 2007.

One of the major responsibilities of the Financial Institutions Division is to arrange various trade and project finance transactions for the corporate customers of the Bank. In 2006 transactions for the overall amount of about US$ 700 million were funded by its international correspondent banks.

Global Finance magazine included Alfa-Bank in the “Best Trade Finance Banks and Providers” category in a survey published in its February 2007 issue (see www.gfmag.com for more details).

The magazine also named Alfa-Bank the “Best Trade Finance Bank in Russia for 2007”. Previously, Alfa-Bank also received this recognition in 2001, 2003 and 2004.

Considering the growing demand of our customers in international and domestic clearing, one of the Bank’s priorities is to provide flexible conditions for these operations. Alfa-Bank has established itself as one of the leading banks operating in the Russian and CIS clearing business. By the end of 2006, Alfa-Bank had a global correspondent network of more than 450 institutions and around 50 “nostro” accounts with leading banks from the CIS, the United States and Eastern and Western Europe.