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GROUP OF COMPANIES REGION
Moscow October 2019
100% 99.99999%
100%
99.985955%
100% 100% 100%
REGION Brokerage
Company LLC
10%
REGION Development
LLC
REGION Asset Management
JSC
LLC REGION Investment
Online brokerage
REGION Depository
Company JSC
LLC REGION Financial services
REGION Leasing JSC
Securities Services
Specialized Depositary Leasing Services
A s s e t M a n a g e m e n t
REGION Investment Company JSC
Andrey ZHUYKOV
90%
LLC REGION Finance
Bondholder Representative
WHPA Limited Ultimate beneficiary
SUDARIKOV S. (100%)
Banking services
LLC ARPI
PPP projects
Consolidated financial performance 2018 2017 2016
Operating income, mln rub/ mln €**** 18 037/ 227 10 100/ 147 11 700/ 170
Net profit, mln rub/ mln € 6 285/ 79 2 200/ 32 4 200/ 61 Net margin, %
35 22 36
Assets, bln rub/ bln € 859/12 844/12 528/8
Shareholders' equity, mln rub/ mln € 22 193/279 16 000/233 14 300/208
KEY FIGURES
Asset Management *
II quarter of 2019
Total assets under management, bln rub/ bln €**
695/ 9.7
Equity, mln rub/ mln € 3 813/ 53
Pension savings of non-state funds under management, bln rub/ bln € 490/ 7
Pension reserves of non-state funds under management, bln rub/ bln € 112/ 1.6
Number of agreements with Non-state Pension Funds on trust management of
pension assets 36
Number of agreements with Non-state Pension Funds on trust management of
pension savings 56
Pension savings of Pension Fund of the Russian Federation under management, mln
rub/ mln €
1 713/ 24
Corporate assets under trust management, mln rub/ mln € 3 647/ 51
Sales transactions (2018)*** Excluding repo transactions
Total trading volume, bln rub/ bln €** 962/ 13
Trading volume for bonds
and federal loan bonds, bln rub/ bln €
.
484/ 7
Equities trading volume, bln rub/ bln € 478/ 6.7
Client transactions, bln rub/ bln € 38 995/ 543
Investment banking (2014-2018 )
Number of issues 212
Amount, bln rub/ bln € 613/ 9
GROUP STRUCTURE
STABLE MULTI-PURPOSE GROUP
*-Consolidated data for REGION Group, which, for the ranking purposes, includes REGION Asset Management, Asset management company Portfolio investments LLC, REGION Trust , REGION Development, REGION Investments AM JSC. Expert RA
** - In local currency at the exchange rate of the Central Bank of Russia as at the end of Q2 2019
**** - In local currency at the exchange rate of the Central Bank of Russia as at the end of Q4 2018
*** - Based on Moscow Exchange ratings
***** - Based on Cbonds league tables for arrangers and underwriters of Russian bonds
99.99999%
100%
100% 16.7%
UGORIA Insurance Company
Insurance services
100%
REGION Investments
AM JSC A s s e t
M a n a g e m e n t
100%
JSC RUSNARBANK
REGION Trust LLC
LLC National Mortgage Factory
Specialised operator of the Russian mortgage market
100%
REG
ION
Depository
Com
pany
becam
e t
he first
am
ong
specia
lized d
epositaries t
o g
ain
right
of
contr
ol over
covera
ge
for
mort
gage s
ecurities issue
REG
ION
becam
e o
ne o
f th
e t
op
thre
e b
iggest
com
panie
s in
Russia
in t
erm
s o
f tr
ansactions
in t
he b
onds m
ark
et
REG
ION
BC
arr
anged t
he first
offering o
f a f
ore
ign c
orp
ora
te
issuer
on t
he R
ussia
n d
ebt
mark
et
(KTZ F
inance,
issue 0
1)
REG
ION
Asset
Managem
ent
w
on
the c
om
petitive t
ender
for
the r
ight
to m
anage s
avin
gs
accum
ula
tions f
or
Housin
g
pro
gra
ms f
or
the m
ilitary
REG
ION
becam
e o
ne o
f th
e
TO
P-5
of
investm
ent
com
panie
s
of
the R
ussia
n f
inancia
l m
ark
et
accord
ing t
o P
ublishin
g H
ouse
Kom
mers
ant
REG
ION
Asset
Managem
ent
is
the W
inner
of
the N
AU
FO
R’s
Sto
ck M
ark
et
Elite
Aw
ard
and
Investf
unds A
ward
s
for
its
achie
vem
ents
during 2
015
REG
ION
Bro
ker
com
pany
becam
e o
ne o
f th
e T
OP-3
of
bookru
nners
by n
um
ber
of
issues
REG
ION
becam
e t
he b
iggest
opera
tor
of
Moscow
exchange in
the m
ain
bid
din
g o
pera
tions
and n
egotiation t
ransactions
with b
onds
REG
ION
Gro
up o
f Asset
Managem
ent
Com
panie
s
becam
e t
he larg
est
in R
ussia
in
term
s o
f th
e n
um
ber
of
non-
sta
te p
ensio
n funds s
erv
iced
REG
ION
Gro
up o
f Asset
Managem
ent
Com
panie
s
becam
e o
ne o
f th
e T
OP-1
0 o
f m
anagem
ent
com
panie
s in
Russia
in t
erm
s o
f volu
me o
f assets
under
managem
ent
HISTORY. ACHIEVEMENTS REG
ION
Investm
ent
Com
pany
was e
sta
blished
REG
ION
’s B
oard
of
Directo
rs
decid
ed t
o d
evelo
p a
sset
managem
ent
busin
ess
Regio
nal associa
tion N
AU
FO
R R
А
assig
ned a
n A
A r
ating t
o
REG
ION
IC
(e
xtr
a-h
igh
reliability)
Pensio
n F
und o
f th
e R
ussia
n
Federa
tion a
nd R
EG
ION
Asset
Managem
ent
sig
ned a
n
agre
em
ent
on
the m
anagem
ent
of
pensio
n a
ssets
REG
ION
Gro
up o
f Asset
Managem
ent
Com
panie
s f
orm
ed
the firs
t C
lose S
hare
In
vestm
ent
real esta
te F
und
RATINGS
Winner of the Finance Elite of Russia Award 2018 in two categories: Best Pension Savings Management Company of the year in the bond market Winner of NAUFOR’s Stock Market Elite 2018 Award in category «Best managing company for institutional investors »
Awarded in 5 categories of Cbonds Award 2018: Best Investment Bank for Non-Financial Institutions (2nd place) Best Investment Bank for Second and Third Tier Borrowers (3rd place) Best Investment Bank for Financial Institutions (3rd place) Best Primary Corporate Bond Deal (arranger on Rosneft's 002P-05 issue) The Best of Russia 2016 award as the Best Investment Company
REGION Brokerage Company is winner of Investor Awards 2017 in categories: Debt Market: Best Deal of 2016 (offering of Gazprom Neft’s BO–07 and BO–02 series bonds) (1st place) Sub-Federal and Municipal Bonds: Best Deal of 2016 (offering of the 35002 series bonds for the Yamalo-Nenets Autonomous Area) (1st place) REGION Asset Management was named a top-three award winner of Investor Awards 2017 in category «Best Investment Strategy of 2016» (PFR pension savings management and REGION Bond Fund’s bond open-end fund management)
Winner of the Investfunds Awards in categories: Best Broker of 2018 Best Institutional Investor in the Property Market of 2017 Best asset management firm for mandatory pension savings of 2015
REGION Asset Management, REGION Trust А++ (exceptionally high level of reliability and quality of services) REGION Development А (secure and high-quality asset management services) REGION Depository Company ruАA, outlook stable, reliability rating (long-term credit) REGION Leasing ruВВ-, outlook stable, credit rating UGORIA Insurance Company ruА, outlook stable, financial reliability rating ААА (the highest level of reliability (PARTAD)) PARTAD stands for Professional Association of Registrars, Transfer Agents and Depositories
MARKET POSITIONS
1995 2001 2002 2003 2004 2005 2006 2007 2009 2011 2012 2013 2015 2016 2017 2018
REG
ION
Gro
up
purc
hased
100%
share
s o
f th
e U
GO
RIA
In
sura
nce C
om
pany
Winner of the RAEX (RAEX Analytics) 2018 award in in category: Best M&A Deal in the Leasing Market REGION Leasing received a RAEX (RAEX Analytics) diploma in the Dynamic Development in 2018 category
BOARD OF DIRECTORS
Dzhannat Tukhtaeva, Member of the Board of Directors Joined the Group in 2012. Started her professional career in 2000. Prior to joining REGION Group, worked at FINAM, BCS. Graduated from the Novosibirsk State University with a major in Mathematical Methods in Economics.
Andrey Zhuykov, Partner, Member of the Board of Directors Member of CBR's Expert Council for Long-term Investments, Member of the Board of Directors at the National Association of Securities Market Participants (NAUFOR), Chairman of Committee of the National Association of Pension funds (NAPF) on investment operations of the Non-state Pension Funds. Joined the Group in 1997. Work experience since 1997. Graduated from Zhukovsky Air Force Engineering Academy and All-Russian Distance-Learning Institute of Finance and Economics.
Sergey Sudarikov, Partner, Member of the Board of Directors Joined the Group in1995. Work experience since 1994. Before joining the REGION Group worked in the Elcom-bank. Graduated from the Mechanics and Mathematics Faculty of the Lomonosov Moscow State University and All-Russian Distance-Learning Institute of Finance and Economics.
Sergey Menzhinskiy, Chairman of the Board of Directors Joined the Group in 2011. Work experience since 1995 Worked in various credit organizations including Promradtekhbank and Russian Agricultural Bank, held the position of the Chairman of the Board of the National Standard Bank. Graduated from the Mechanics and Mathematics Faculty of the Lomonosov Moscow State University and Russian Presidential Academy of National Economy and Public Administration. MBA from Moscow International Higher Business School MIRBIS.
Andrey Nadin, Member of the Board of Directors Joined the Group in 2013. Prior to that, worked at BDO Unicon Consulting and ANT-Inform. Also led a project to optimise the sales structure at TBinform (TNK-BP). Graduated from the Moscow State Institute of Electronics and Mathematics (Technical University) majoring in Mathematical Methods in Economics.
Tatiana Fedyashina, COO Joined the Group in 2002. Started her professional career in 2000. Graduated from the Saratov Socio-Economic Institute majoring in Finance and Credit.
Petr Kostikov, acting Head of REPO Joined the Group in 2002. Graduated from Zhukovsky Air Force Engineering Academy in 1996, and Interdisciplinary Institute for Advanced Studies at Plekhanov Russian Economic Academy with a degree in Finance and Banking. Before 2002, he did military service.
Dmitry Tonkogubov, Head of Retail Brokerage Services Joined the Group in 2016. Graduated from the Moscow State University, Department of Mechanics and Mathematics, in 2000. Received an MBA degree from the Russian Presidential Academy of National Economy and Public Administration under the President of the Russian Federation in 2011. Prior to joining REGION Group, held the COO position at IFC Metropol (over 14 years in the company).
Valeria Repkova, Head of Public-Private Partnership Graduated from the Novosibirsk State University with a major in Law, and the Moscow School of Social and Economic Sciences. Started her professional career in 2001. Prior to joining REGION Group, worked at various investment and consulting companies, including in the areas of supporting and managing public-private partnership projects (since 2008).
EXPERIENCED TEAM OF MANAGERS
Alexei Kuznetsov, Managing Director Trade operations, DCM Member of committee on fixed-income securities of CJSC MICEX Stock Exchange. Joined the Group in 1997. Work experience since 1992. Graduated from Faculty of Tool Engineering of Bauman Moscow State Technical University.
Olga Konysheva, Real Estate Asset Management Joined the Group in 2006. Started her professional career in 2000. Graduated from Kutafin Moscow State Law University with a degree in Law. MBA in Real Estate Management from the Russian Presidential Academy of National Economy and Public Administration under the President of the Russian Federation (received in 2009).
Rustem Mukhamedov, Leasing Joined the Group in 2013. Started his professional career in 1999. Held positions at various leasing companies, including Renaissance-Leasing, Gaztechleasing. Graduated from the Moscow Power Engineering Institute and Financial University under the Government of the Russian Federation
Anna Zaytseva, Specialized depositary services Joined the Group in 2000. Work experience since 1997. Before joining the REGION Group worked in Depositary and Clearing Company. Graduated from Moscow Institute of Physical Engineers, specialized in Applied Mathematics. MBA from «Integral» MBA Higher School (Plekhanov Russian Academy of Economics).
Ekaterina Zaytseva, Financial Asset Management Securities market professional since 1997. Before joining the REGION Group worked in various investment companies and credit institutions, including Metallinvestbank. Graduated from Moscow University of Consumer Cooperation, Master of Science in Finance and Credit, SKOLKOVO Business School (Executive MBA).
Alexey Okhlopkov, CEO of UGORIA Insurance Company Started his professional career in 1994. Holds a degree from the Financial University under the Government of the Russian Federation and a certificate in financial markets from the London School of Economics and Political Science. Also has an MBA from London Business School (London) and Columbia Business School (New York). He is a qualified financial market professional (certificates series 5.0 and 8.0). Worked at Moscovia bank, Gazprombank, Severstal, and headed Khanty-Mansiysk Non-State Pension Fund.
LINES OF BUSINESS
Brokerage services
Online brokerage
Trade operations
Specialized Depositary
Bondholder Representative
Asset Management for institutional and corporate
clients
Сapital market services
Real Estate Asset Management
REPO
Asset Management for private investors
REGION Depository Company
REGION Asset Management
Group
REGION Brokerage Company
REGION Leasing
Analytics
Universal leasing company
RUSNARBANK
ARPI
REGION Finance
REGION Investment Company
REGION Investment
Investment banking
Banking services for individuals and
legal entities
Public-Private Partnership projects
UGORIA Insurance Company
Insurance services
Specialised operator of the Russian
mortgage market
National Mortgage Factory
Trust management of pension assets and pension savings Trust management of insurance assets Trust management of assets for corporate clients Trust management of assets for state funds Management of securities investment portfolios with guaranteed
return
ASSET MANAGEMENT FOR INSTITUTIONAL AND CORPORATE CLIENTS
OUR SERVICES:
REGION Group of Asset Management Companies is one of the acknowledged leaders in the Russian market of asset management. The Group focuses on asset management for institutional clients. It includes:
REGION Asset Management – asset management for non-state pension funds
REGION Trust – individual trust asset management
REGION Investments - provides trust management services for private customers and management of mutual investment funds
MARKET POSITIONS, II quarter of 2019
Position Rating Value,
mln rub/ mln €***
2 Pension savings of non-state funds under management
489 543/ 6 818
3 Total assets under management 695 200/ 9 682
3 Pension reserves of non-state funds under management
111 877/ 1 558
7 Pension savings of Pension Fund of Russian Federation under management
1 713/ 24
Best asset management firm for mandatory pension savings by Investfunds Awards 2015
Winner of NAUFOR’s Stock Market Elite 2018 Award in category «Best managing company for institutional investors » REGION Asset Management was named a top-three award winner of Investor Awards 2017 in category «Best Investment Strategy of 2016» (PFR pension savings management and REGION Bond Fund’s bond open-end fund management)
REGION Asset Management, REGION Trust А++ (exceptionally high level of reliability and quality of services)
Based on the results of the past three years, the pension savings portfolio managed by REGION Asset Management came in first, according to a ranking published by the Pension Fund of Russia as at the end of Q2 2019*
OUR CLIENTS
Source: Expert RA Rating Agency
Ekaterina Zaytseva Financial Asset Management
*- according to Pension Fund of Russia
***-In local currency at the exchange rate of the Central Bank of Russia as at the end of Q2 2019
**- Assets of REGION Group, which, for the ranking purposes, includes REGION Asset Management, Asset management company Portfolio investments LLC, REGION Trust, REGION Development, REGION Investments AM JSC
Winner of the Finance Elite of Russia Award in category «Grand Prix: Asset Management company of the year» (2015-2017), in category «Best Pension Savings Management» (2018)
* In local currency at the exchange rate of the Central Bank of Russia as at the end of Q3 2019
ASSET MANAGEMENT FOR PRIVATE INVESTORS
An attractive tool for private investors with available capital starting from RUB 10 mln. We provide convenient access to a wide range of financial investment products and employ a personalized approach.
• Individual investment accounts (IIA)
• Mutual investment funds (mutual funds)
A form of investment account opened by brokers and trust managers and intended for securities transactions. Additional opportunity for investors who have been using their IIA for at least three years to qualify for a tax refund. Opening an individual investment account (IIA) is available, among other things, online on REGION Asset Management's website at iis.region-am.ru
The opportunity to invest a small amount of money (starting from RUB 10,000/ € 141*) while using the services of a professional manager. By acquiring shares of various mutual funds, investors can diversify investments and thus mitigate possible risks.
Selected mutual funds on offer**
REGION Investments manages: • REGION Equity Fund, open-end fund of quoted financial
instruments • REGION Bond Fund, open-end fund of quoted financial
instruments • America, open-end fund of quoted financial instruments • ZOLOTOY ETALON, open-end fund of quoted financial
instruments • REGION Eurobonds, open-end fund of quoted financial
instruments • Balanced, open-end fund of quoted financial instruments
REGION Asset Management manages: • DAKO, open-end fund of quoted financial instruments
REGION Bond Fund open-end fund of quoted financial instruments managed by REGION Investments came in first in the Investfunds ranking of the highest yield open-end bond funds covering the period from 30 September 2016 to 30 September 2019
REGION Bond Fund open-end fund of quoted financial instruments managed by REGION Investments is among the Top 3 highest yield open-end bond funds according to the Investfunds ranking covering the period from 28 September 2018 to 30 September 2019
REGION Asset Management Group offers a wide range of financial products, bringing all opportunities of
the stock market for clients to invest in.
REGION Asset Management was named a top-three award winner of Investor Awards 2017 in category «Best Investment Strategy of 2016» (PFR pension savings management and REGION Bond Fund’s bond open-end fund management***)
** Data as at 30 September 2019
*** On 22 September 2017, REGION Bond Fund open-end bond fund was renamed as REGION Bond Fund open-end fund of quoted financial instruments. **** Moscow Exchange, 1st October 2019
• Individual trust management
No 4 by number of opened individual investment accounts****
Olga Konysheva Real Estate Asset Management
REAL ESTATE ASSET MANAGEMENT
OUR CLIENTS:
From 2004 to 2018, REGION Asset Management Group’s closed-end mutual fund managed:
• over 200,000 sq m of residential housing (registered title and sales at the construction stage)
• around 100,000 sq m of commercial real estate (registered title)
• over 16,000 ha of agricultural land (registered title)
• Management of real estate through closed-end mutual funds
• Real estate (property) management
• Asset and transaction structuring. Consulting services. State registration services
• Review of investment opportunities in the residential and commercial real estate market
REAL ESTATE ASSET MANAGEMENT SERVICES:
REGION Development А (secure and high-quality asset management services)
REGION Development focuses on running real estate investment
projects via closed-end mutual funds
Geography of investment projects (2004–2018)
Assets under management by REGION Asset Management Group as at the end of Q2 2019 exceeded RUB 85 bln/ € 1.2 bln*
Moscow Region
2,000 sq m of residential housing
Saratov Region
Penza Region
16,000 ha of agricultural land
Voronezh Region
9,000 sq m of residential housing
Stavropol Territory
6,000 sq m of residential housing
Yamal-Nenets
Autonomous Area
1,700 sq m
of commercial real estate
Khanty-Mansi Autonomous Area – Yugra
174,000 sq m of residential housing
16,800 sq m of commercial real estate
8 cities and towns (Surgut, Khanty-Mansiysk, Nizhnevartovsk,
Nefteyugansk, Uray, Yugorsk, Langepas, Pyt-Yakh)
Yaroslavna shopping center
Siberia shopping center
Tyumen Region
1,300 sq m
of commercial real estate
Omsk Region
900 sq m
of commercial real estate
Irkutsk Region
600 sq m of residential housing
5,600 sq m of commercial real estate
Edelweiss mini-hotel
Olimpiada store
Novosibirsk Region
9,200 sq m
of residential housing
Moscow
600 sq m of residential housing
100,000 sq m of commercial real estate
Mercedes-Benz Plaza business center
Source: Expert RA Rating Agency
*-In local currency at the exchange rate of the Central Bank of Russia as at the end of Q2 2019
Winner of the Investfunds Awards in category: Best Institutional Investor in the Property Market of 2017
Analysis of clients’ needs and potential opportunities
Selection of the optimal form of borrowing
Transaction structuring
Coordination of transactions
Bond marketing and sales
Support of secondary market trading
Organization of order execution services
REGION Group is a leading arranger of sub-federal, municipal, corporate and bank bonds in Russia that offers a full scope of capital raising services through the issuance of various bond types: classic, exchange-traded, commercial, and subordinated bonds and also using the securitization and public-private partnership schemes.
CAPITAL MARKET SERVICES
Alexei Kuznetsov Head of DCM
Consulting support for bond issues
All projects involve a team of highly qualified professionals in arranging capital market transactions, sales, bond trading and analytical coverage. With an extensive experience in capital market transaction execution and support, our experts have a track record both with REGION Group and other major financial holding companies and state institutions.
Winner of Cbonds Awards 2018 in categories : Best Investment Bank for Non-Financial Institutions (2nd place) Best Investment Bank for Second and Third Tier Borrowers (3rd place) Best Investment Bank for Financial Institutions (3rd place) Best Primary Corporate Bond Deal (arranger on Rosneft's 002P-05 issue)
Winner of the Investor Awards 2017 in two categories : Debt Market: Best Deal of 2016 (offering of Gazprom Neft’s BO–07 and BO–02 series bonds) (1st place) Sub-Federal and Municipal Bonds: Best Deal of 2016 (offering of the 35002 series bonds for the Yamalo-Nenets Autonomous Area) (1st place)
Winner of the Finance Elite of Russia Award 2014-2018 in category: Company of the year in the bond market
In June 2017, REGION BC arranged the issue of KTZ Finance's series 01 bonds setting a CIS precedent of dual listing on two stock exchanges – the MOEX and KASE. The KTZ Finance offering also provided an opportunity to use a new on-exchange book building service now available in Russia.
No 1 by the volume of arranged offerings for publicly traded bonds (excluding self-placements) among Russia’s bond issue arrangers *
No 3 by the total value of arranged bond offerings among Russia's bond issue underwriters**
No 4 by the total value of arranged bond offerings among Russia’s bond issue arrangers*
Three-fold increase in the total IPO value compared with 2017**
*- Based on Cbonds in the nine months of 2019 **- Based on Cbonds as at the end of 2018
CAPITAL MARKET SERVICES: sub-federal and municipal sector
* - In local currency at the exchange rate of the Central Bank of Russia as at the end of Q4 2016 **-In local currency at the exchange rate of the Central Bank of Russia as at the end of Q4 2017 *** - In local currency at the exchange rate of the Central Bank of Russia as at the end of Q4 2018
Republic of Sakha (Yakutia) 2019, 2018, 2017, 2016, 2015, 2014, 2013 RUB 39 500 000 000 496 mln € Issue 35012,35010, 35009, 35008, 35007, 35006, 35005
Belgorod Region 2019, 2017, 2016, 2015 RUB 14 750 000 000 185 mln € Issue 34012, 35011, 34010, 34009
Novosibirsk 2017, 2016, 2015 RUB 10 000 000 000 145 mln € Issue 35009, 35008, 35007
Nizhny Novgorod Region 2018, 2017, 2016, 2015, 2013 RUB 54 000 000 000 784 mln €*** Issue 35013, 34012, 31011, 34010, 34009
Yamalo-Nenetsky AO 2016 RUB 20 000 000 000 320 mln €* Issue 35002
Komi republic, 2017 RUB 10 000 000 000 145 mln € Issue 35014
Kursk Region, 2017 RUB 1 300 000 000 19 mln € Issue 35001
1
3
2
4
5
6
7
Volgograd 2015, 2014 RUB 2 000 000 000 32 mln € Issue 34008, 34007
Tomsk, 2016 RUB 1 000 000 000 16 mln € Issue 34006
Tver Region, 2013 RUB 3 000 000 000 48 mln € Issue 34009
Republic of Khakassia 2013 RUB 3 000 000 000 48 mln € Issue 35003
Leningrad Region 2014 RUB 7 900 000 000 125 mln € Issue 35001
Kostroma Region, 2013 RUB 4 000 000 000 63 mln € Issue 34007
Orenburg Region, 2014 RUB 6 000 000 000 95 mln € Issue 35002
Udmurtian Republic 2013 RUB 2 000 000 000 32 mln € Issue 35001
Volzhsky, 2014 RUB 1 000 000 000 16 mln € Issue 34001
8
9
10 11
14
13 15
17 16
1 2
4
5 6
7
8
9 12 10
11
13
14
15
16
17 3
Magadad Region, 2017 RUB 1 000 000 000 15 mln € Issue 35001
12
CAPITAL MARKET SERVICES: сorporate and banking sector
KTZ Finance
*-In local currency at the exchange rate of the Central Bank of Russia as at the end of Q2 2019
200+ offerings worth over
RUB 700 bln from 1 January 2014
to 30 June 2019
OUR SERVICES
• Buying/selling federal loan bonds (OFZ), corporate bonds, equities
• Participation in IPOs • Cash flow structuring • Financing, REPO transactions • Analytical research • Market making
For retail investors:
For industrial companies:
For professional participants:
• Bond portfolios as an alternative to bank deposits • Use of bonds to generate cash flows • Investments in Russian and foreign equities • Financing against securities collateral • Placement of available cash on the MICEX at the REPO
rate • Analytical research
• Investments in Russian and foreign equities • Bond portfolios as an alternative to bank deposits • Federal loan bonds (OFZ) • Analytical research
Leading market operators, September 2019
TRADE OPERATIONS
Position Ranking Value,
mln rub/ mln €*
2
Bonds trading turnover in basic trading mode, in negotiated deals mode and in negotiated deals mode & address orders with CCP
47 659/ 674
The best dealer company in the bond market (1st place) The best trading in the bond market (3rd place)
Awarded of Cbonds Awards 2017 in categories :
Source: Moscow Exchange website
*-In local currency at the exchange rate of the Central Bank of Russia as at the end of Q3 2019
BROKERAGE SERVICES
Russian and foreign securities
Single broker account for all asset types
Individual investment accounts (IIA)
Trading advice
Trading terminal Quick
Withdrawal of cash on margin against liquid securities
• Equities
• Bonds
• Eurobonds
• REPO
Stock market
• Futures
• Options Derivatives
market
• Currency pairs
• Swaps
• Forwards
FX market
REGION Broker Company provides an entire range of services to its clients for executing transactions in the Russian and international financial markets.
No. 1 among the leading operators of the Moscow Exchange by the volume of client transactions in 3Q 2019 No. 2 in the ranking of the leading operators on the Moscow Exchange’s USD/RUB market in September 2019
Winner of the Investfunds Awards in category Best Broker of 2018
INVESTMENT BANKING. FINANCIAL CONSULTING AND CORPORATE FINANCE
REGION Group has considerable experience in negotiating and closing M&A deals, fund-raising for investment transactions, financial engineering, corporate and financial consulting. Our specialists can carry out a comprehensive study of client’s opportunities and supply capacities in the market, as well as develop and implement an optimal solution for the client.
FUNCTIONS OF REGION GROUP WHILE PROVIDING SERVICES
● Support of M&A, LBO / MBO transactions means consulting, legal support, provision of financing
● Sale of non-core assets means identification of none-core lines of business, preparation for sale (financial statements, business function, operating function), search for interested purchasers, conclusion of transactions.
● Sourcing bank funding means assistance in resolution of challenging issues related to bank loan funding, selection of the optimal form of the banking products, consulting, performing negotiations with the banks, supporting a borrower during the servicing of the extended loans.
M&A transactions support
LBO / MBO – consulting and closing transactions
Sale of non-core assets
Sourcing bank funding
ADVANTAGES FOR THE CLIENTS OF REGION GROUP
● The team with extensive experience in banking operations and financial consulting
● Wide range of partners – banks and institutional investors
● Available and reliable investment operations mechanisms within the assets structure restrictions
● Adaptation and provision of own infrastructure for completion and support of credit transactions
Online opening of accounts and electronic document management Client’s personal account
Mobile apps for iPhone and Android Simple adding funds to an account, with bank cards as one of the
options Individual investment account (IIA) Robo adviser REPO investments 24/7 trading SMS alerts and trading signals Security and two-factor authentication Help desk and information and analysis support
REGION Investments provides remote retail brokerage services. The Company has developed Evolution, a high-tech trading platform, to provide a wide range of Russian investors with a straightforward and user-friendly solution for security investments with no need to visit the broker’s office.
Dmitry Tonkogubov Head of Online Brokerage
Client services
ONLINE BROKERAGE
REPO
REGION BC provides financing and loans against securities, direct and reverse REPO transactions, including REPO with the central counterparty and with GCC. REGION BC is a member of the ICMA (International Capital Market Association), the Moscow Exchange Securities Lending and REPO Committee, and the Russian REPO Council of the National Securities Market Association
Petr Kostikov Acting Head of REPO
Position Corporate name Trading volume, bln
rub/ bln €*
1 Sberbank 939/ 13
2 Group REGION 847/ 12
3 Bank GPB (JSC) 408/ 6
Leading Repo Market Operators (Average daily open interest)
September 2019
Source: Moscow Exchange
*-In local currency at the exchange rate of the Central Bank of Russia as at the end of Q3 2019
In December 2018, REGION BC and Sberbank closed the world’s first tripartite blockchain-based REPO deal using the National Settlement Depository’s infrastructure
REGION BC receives Moscow Exchange award in the Long-term REPO Leader category (2019)
ANALYTICS
Research department of REGION Group has many years of experience and expertise and helps to make the investment process more comfortable. The team of experts is committed to assisting its clients in better understanding the debt market to make investments more profitable.
In-house analytical reports
• Immediate comments on developments in the Russian financial market
• Monitoring of budgets of Russia’s regions
• Analysis of upcoming IPOs with recommendations for investors
Valery Vaisberg made it to the top three in the Best Macroeconomics Research category (Cbonds Awards 2017)
Cbonds Review (2017) named Alexander Ermak the most widely cited analyst
Alexander Ermak was recognized one of the Best Fixed Income Analysts (Cbonds Awards 2016)
Valery Vaisberg Head of Research
Alexander Ermak Chief Debt Market Analyst
• Macroeconomic projections and research
Analysts of REGION Group are regular speakers at conferences of Cbonds Agency, Banks of Russia – 21st Century forum, etc. Our experts provide comments to Russia's leading business media, publish opinion articles in Forbes and Cbonds Review,
and often appear on the RBC TV channel.
REGION Depositary Company provides a full range of specialized depositary services.
Deals with all types of financial instruments including bills, deposit certificates, bonds, shares, units, mortgage bonds and other mortgage documents.
Has an extensive professional experience as a custodian for various types of mortgage and lease financing.
Maintains a register of mortgage pool for Russian mortgage securities. Depositary Company is well known by IFC and EBRD, and has been acting as a custodian in cross-border transactions for mortgage securitization since 2003.
Maintaining a register of mortgage pool
Keeping record and control over assets of unit investment trust
Audit of pledge/mortgage/leasing dossiers
Keeping record and storage of mortgage/leasing/factoring dossiers
Control of dossier conformity to credit agreement requirements
Monitoring the pool composition and structure
Anna Zaitseva Head of Specialized Depositary Services
SPECIALIZED DEPOSITARY
** as at 31 December 2018 (PARTAD)
KEY CLIENTS
Specialized depositary services for insurance companies and SROs
REGION Depositary Company ruАA, stable outlook, reliability rating (long-term credit strength) REGION Depositary Company ААА (the highest level of reliability (Professional Association of Registrars, Transfer Agents and Depositaries (PARTAD))
More than 100 clients
over the Company’s
history
100+ clients
150+ transactions
Over 150 successful transactions
620+ RUB bln
More than RUB 620 bln/ €
7.8 bln*
under management
16 years of
experience
16 years of experience
in mortgage dossiers
Over 250 thousand
of audited
pledges
250+ thousand
REGION Depository Company ranks 5th among specialised depositories by
the cost of property under control**
*-In local currency at the exchange rate of the Central Bank of Russia as at the end of Q4 2018
REGION Group created REGION Finance, a specialised bondholder representative (BR) company, which benefits from all of the Group’s expertise and offers a full scope of BR and advisory and execution services.
REGION Finance:
• unique restructuring experience (Russia’s first bail-in – PERESVET Bank);
• advisor during the sale of restructured bonds to third parties;
• extensive expertise in securitisation (monitoring various credit pools, including lease liabilities and mortgages).
Identifying issues that may result in violation of bondholders’ rights and legal interests
Taking measures aimed at protecting bondholders’ rights and legal interests
Providing information to bondholders
Appealing to the commercial court (cases of bankruptcy of the issuer or the security provider for the issue, as well as any other proceedings)
Executing security holders' powers
Implementing resolutions of the general meeting of bondholders
Executing other duties under regulations, including Federal Law No. 210-FZ dated 23 July 2013
BONDHOLDER REPRESENTATIVE
KEY CLIENTS
Controlling the issuer's fulfilment of bond-related obligations
A Bondholder Representative (BR) represents the interests and protects the rights of bondholders
League table of bondholders' representatives as at the end of Q2 2019 domestic corporate bond issues
Source: Cbonds The ranking includes domestic corporate bonds issued by Russian entities offered for the first time between 1 January 2019 and 30 June 2019, and whose bondholder representative has been specified in the Prospectus or Bondholder Representative Notice
Position BR Number of deals transactions
1-2 REGION Finance 7
ИК Фридом Финанс, БО-01; МСБ-Лизинг (Адмирал-Лизинг), 002P-02; МигКредит, БО-01МС; ОбъединениеАгроЭлита, БО-П03; Ред Софт, 001P-02; ТД Мясничий, БО-П03; ТЕХНО Лизинг, 001P-01.
The BR company provides its services with regard to 45 bond issues for a total of around RUB 170 bn*
*- as at the end of Q2 2019
REGION Leasing is a diversified leasing company, which assists in modernization of tangible assets and provision of equipment to manufacturers in key capital-intensive industries. The Company offers the opportunity to raise long-term structured funding from first-class Russian and international financial institutions.
MAJOR LESSEES
MAJOR LENDERS
LEASING
Rustem Mukhamedov Head of Leasing
Leasing of motor vehicles and special equipment
Leasing of the rolling stock
Leasing of aircrafts
Leasing of sea and river vessels
Leasing of equipment
Leaseback
Indicator* Value
Portfolio, bln rub/ mln €**
38.6/546
* - based on RAEX Analytics research for 1H 2019
«ruВВ-» (credit rating ), outlook stable
Winner of the RAEX (RAEX Analytics) 2018 award in the following nominations: Best M&A Deal in the Leasing Market Alexander Kozhevnikov, First Deputy CEO at REGION Leasing, received the award «For Contribution to the Development of the Russian Leasing Market» A RAEX (RAEX Analytics) diploma in the Dynamic Development in
2018 category
**-In local currency at the exchange rate of the Central Bank of Russia as at the end of Q3 2019
Sourcing non-public funding for development and reconstruction of infrastructure
(share capital and “senior debt”)
Project structuring and preparation for implementation
(preparation of financial, engineering and legal groundwork for the project’s implementation)
Project implementation
(turnkey construction, commissioning and operation)
•Roads and road facilities
•Overpasses
•Public transport
Transport infrastructure
•Diagnostic and treatment facilities
•High-tech facilities Healthcare
•Water supply and sewage
•Heat supply
•Waste management
Utilities infrastructure
One of REGION Group's priorities is the development of the public-private partnership (PPP) and facilitation of infrastructure investments. To implement PPP projects REGION Group established Agency for Project Initiative Development (ARPI) – a subsidiary company that works as part of the Group to arrange and support investment projects based on PPP and project financing mechanisms. APID is a team of experts benefiting from extensive experience in PPP, with a portfolio of landmark PPP projects in various economic sectors with participation of the Russian Federation and its regions.
• Opportunity to create infrastructure “today” by attracting private
investment, levelling or deferring budget costs for the medium or long term
• Sharing the infrastructure project implementation risks with a private partner, more effective budget spending, execution of state functions and providing public services to individuals
• Private partner’s execution of their commitments within the project’s life cycle, including turnkey construction and operation during the agreement term
PUBLIC-PRIVATE PARTNERSHIP PROJECTS
COMMON FEATURES OF ALL PPP MODELS:
KEY INVESTMENT AREAS
Valeria Repkova Head of Public-Private Partnership
•Smart city IT infrastructure
Established in 2002, JSC «RUSNARBANK» joined REGION Group in November 2016. The bank offers its clients a comprehensive range of
financial services that rely on modern banking technologies. Its products are customized to fit the needs of various client categories, both private and corporate. The bank pursues a tailored approach and long-term partnerships with its clients. Key areas of business:
BANKING SERVICES
Main tools for fostering client partnerships: • Rapidly growing bank with a focus on medium-sized
enterprises and individuals • Substantial capital and liquidity cushion • Team of experts with experience in management positions at
large banks • Tailored approach and competitive tariffs • Implementation of cutting-edge banking technologies
Seven offices in Moscow and the Belgorod Region
Servicing medium and large businesses
Small business lending based on the standards of the EBRD programs
Private banking
Development of retail business through conventional product offerings
Expedited issuance of bank guarantees in compliance with Federal Laws No. 44-FZ and No. 223-FZ
RAEX (Expert RA) assigned the ruBBB- credit rating to JSC «RUSNARBANK» with a stable outlook
Rating-Agentur Expert RA GmbH (Germany) assigned the B+ credit rating to JSC «RUSNARBANK» with a stable outlook
INSURANCE
UGORIA Insurance Company is a universal insurer offering a wide
range of products. Its is licenced for 23 types of insurance and reinsurance activities and applies over 60 various rules. UGORIA Insurance Company has a subsidiary – UGORIA-Life State Insurance Company. Its client base comprises more than 40,000 corporates and over 1.8 million retail customers. The company’s regional network consists of 136 branches and 180 agencies and points of sale operating in 57 Russian regions.
MHI and CMTPL
Personal accident and health insurance
Personal property insurance
Corporate property insurance
Liability insurance
Special machinery insurance
Alexey Okhlopkov CEO of UGORIA Insurance Company
2018 performance
The Company won the nationwide Consumer Rights and Service Quality 2016 award in the Insurance Company category.
According to a survey by RBC, an information agency, UGORIA Insurance Company became the market leader by claim settlement ratio in 2015.
TOP 13 No. 13 in terms of CMTPL premiums with a 2.3% market share No. 11 in MHI premiums with a 1.9% market share, according to the Bank of Russia
Insurance premium portfolio
RUB 1.4 BN
Net income in accordance with the Industry-Specific Accounting Standards
Ratings and awards
ruA (financial reliability rating), a stable outlook The Bank of Russia included the Company in the list of Russia’s systematically important insurance companies
RUB 10.3BN
CONTACTS
Zubovsky Boulevard 11a, Moscow, 119021, Russia Tel.: (495) 777-29-64
www.REGION.ru
