DEG (Deutsche Investitions und Entwicklungsgesellschaft mbH) becomes a shareholder of TransCapitalBank.

The Share Purchase Agreement between German investment corporation DEG and TransCapitalBank related to purchase of 8,3919% ordinary shares in TCB's capital has been signed today in Moscow. It was also accomodated between the parties that 1 representative from DEG will join the TCB's Board of Directors. Thus, DEG becomes the second largest western shareholder of TransCapitalBank after European Bank for Reconstruction and Development (equity stake is 25% + 1 share). The aggregate stake of EBRD and DEG in TCB's equity is more than 33%.

DEG is a member of KfW Bankengruppe (KfW banking group), which is fully owned by German government. KfW gives impulses for the economy, society and ecology in Germany, Europe and the world over. It also makes promotion of SMEs, developes home finance or housing modernization, finances protects related to the environment protection, provides Export and Project Finance in the developing and transition countries. KfW is one of the ten biggest banks in Germany with a balance-sheet total of EUR 360 billion (as per 31.12.2006).

DEG finances investments of private companies in developing and transition countries. As one of Europe's largest development finance institutions, it promotes private business structures to contribute to sustainable economic growth and improved living conditions. It should be mentioned that DEG enters into capital of only those institutions, which successfully passed through its thorough legal and financial expertise (due diligence).

Receipt of such a shareholder as DEG contributes to strengthening TCB's positions on the international financial markets, increasing of the quality of the Bank's equity, decreasing of TCB's costs related to funding on the debt capital markets and growth of confidence TransCapitalBank obtains from major international financial institutions.

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