State Corporation “Bank for Development and Foreign Economic Affairs (Vnesheconombank)”

Custody

The State Corporation «The Bank for Development and Foreign Economic Affairs (Vnesheconombank)» is a Russian state-owned specialized bank and is one of the oldest banks of this country. The State Corporation «The Bank for Development and Foreign Economic Affairs (Vnesheconombank)» is acting in accordance with the Federal Law of the Russian Federation of May 17, 2007 No. 82-FZ «On Bank for Development». Nowadays Vnesheconombank is a powerful financial institution having correspondent relations with more than 500 big banks almost in all countries and regions of the world.

83-years experience on domestic and foreign financial markets in accordance with international standards coupled with solid international reputation of the Bank forms the basis for reliability and professionalism of Vnesheconombank’s Depository.

Vnesheconombank is authorized to conduct custody activities under the Federal Law «On Bank for Development» and the special license of Federal Financial Markets Service of Russia. The Bank is empowered to carry out all kinds of custody transactions in all types of securities whether in roubles or in foreign currency.

Since 1999 Vnesheconombank managed to successfully launch and develop its custody business. Vnesheconombank is a leading Russian custodian servicing the domestic market of the Russian Government Bonds denominated in US Dollars.

Vnesheconombank provides a wide range of custody services to institutional investors and professional securities market participants. The whole volume of securities deposited with Vnesheconombank’s custody is more than 15 billion US Dollars that makes us one of largest custodian banks in the Russia. We provide to our clients access to leading Russian and foreign stock exchanges as well as to OTC market on all types of securities.

The customer base of Vnesheconombank’s Depository comprises more than 1300 customers and correspondents. All major Russian custodians have nominee’s accounts opened with Vnesheconombank, thus enabling customers of different custodians to centrally settle their transactions through Vnesheconombank. Well-developed information facilities with respect to recent changes in legislation, anticipated corporate actions of issuers, arrests and other encumbrances imposed on securities etc. help our customers to successfully mitigate the risks associated with their investments.

Due to its status as a state corporation and traditionally close relationship with the Government bodies Vnesheconombank is attracted to service a part of financial activities of the Government in the capacity of paying agent and custodian.

In its capacity as an authorized depository and paying agent of the Ministry of Finance Vnesheconombank is able to influence the process of taking decisions on regulation of the market of Russian Government foreign-currency denominated bonds. The Bank’s opinion is given attention by the Government bodies supervising the capital market of Russia.

Vnesheconombank maintains direct account with Euroclear Bank and Clearstream Banking international central securities depositories to service eurobonds and foreign securities on behalf of its customers. Vnesheconombank has the biggest amount of assets deposited with Euroclear among Russian depositories.

The Depository of Vnesheconombank is staffed with highly professional managers having necessary educational background as well as expertise. Most of them had training abroad and speak fluent English.

The Depository is equipped with an innovative and sophisticated computer-based accounting system ensuring correctness and continuity of records on custody accounts. Increased efficiency is sought through a leading-edge computer system of Minfin Bonds’ record-keeping which allows to track the movement of each Bond’s number from the very moment of its primary distribution.

Exchange of documents and information between the Depository of Vnesheconombank and its customers and correspondents is feasible via SWIFT or tested telex.