NDC Reports Record RUB5 Trillion Value of Securities on Deposit

MOSCOW - The National Depository Center (Closed Joint Stock Company) (NDC), Russia’s only settlement depository servicing the full range of debt and equity securities of Russian issuers, today issued its operating results for January-September 2009.

The value of securities on deposit with NDC as of 30 September increased 30.3% to RUB5.242 trillion compared with RUB4.25 trillion as of 30 September, 2008. Aggregate nominal value of corporate bonds on deposit for the first nine months of 2009 rose 8.51% against the comparable period of 2008; the increase in the aggregate nominal value of Russian Federation and corporate Eurobonds reached 194.98%. Aggregate value of Unit Investment Trust (UIT) units decreased 20.06% in January-September 2009 in comparison with the same period of 2008.

For the first nine months of 2009 the number of securities held on deposit increased from the beginning of the year by 5.7% to 2.105 trillion (compared with 2.225 trillion as of 31 December, 2008). Total number of depository operations for the first nine months of 2007 rose by 34.3% in comparison with the same period of 2006, exceeding 1.79 million operations.

NDC’s securities turnover (the market value of securities transferred in inventory operations) decreased 11.12% for the first nine months of 2009 against the comparable period of 2008 to RUR40.67 trillion (RUR45.764 trillion in January-September 2008).

The number of inventory operations conducted by NDC for January-September 2009 amounted to 1,788,777. This was 7.99% lower than for the first nine months of 2008. 79.67% of inventory operations were represented by shares (1,425,157 operations). The number of depository accounts increased 7.68% for January-September 2009 to 1,878 accounts (2.9% more than for the same period of 2008).

The number of securities issues serviced by NDC increased 5% for the first nine months of 2009 reaching 2,832. Number of issuers serviced by NDC amounted to 1,396 companies. this is 5.67% more than for January-September 2008.

1. Provision of Services in the Course of Corporate Actions

NDC is the leading Russian paying agent on corporate and regional bonds. As of 30 September, 2009 NDC’s share in this market was 31.5% (basing on nominal value of corporate and regional bonds on deposit). Despite the financial crisis for the first nine months of 2009 NDC as a paying agent serviced 47 new bond issues of 24 issuers. Currently NDC services 266 bond issues from 183 issuers. For the first nine months of 2009 NDC made 439 corporate and regional bond issues’ coupon and maturity payments for RUB92.2 billion (467 payments for RUB85.68 billion for January-September 2008). NDC’s payments on registered securities (dividends, UITs income, revenues from repurchase of shares) for the first nine months of 2009 increased 7.36% against the comparable period of 2008: from RUB6.374 billion in January-September 2008 to RUB6.844 billion in January-September 2009. Eurobond coupon and maturity payments for the first nine months of 2009 amounted to RUB2.346 billion.

2. Provision of New Services

Starting 15 June, 2009 NDC and MICEX Settlement Chamber CJSC began offering a new service allowing the settlements on the basis of the Delivery Versus Payment (DVP) scheme using NDC and MICEX Settlement Chamber accounts opened with Euroclear international central depository. In this settlement scheme, NDC is responsible for the securities record and MICEX Settlement Chamber controls the flow of funds. Since the launch of the new service 14 depositors have opened foreign currency accounts in MICEX Settlement Chamber CJSC. 157 transactions for US$357 million have been conducted.

NDC is expanding its product range and improving access to its services for the company’s customers. The new NDC approach to the transmission of electronic documents provides for the deployment of new web applications and Internet protocols with guaranteed operational delivery of electronic messages.

- In 3Q 2009 NDC implemented a new service which is being implemented through NDC depositor work stations which will be able to access the system with a web browser and additional LUCH software. NDC provides a promotional period in order to advertise the new services and to allow time for full integration of the services into the internal automated systems of EDI participants. The new service will not replace current NDC communications channels. It provides guaranteed order delivery, allows EDI participants to follow order status and to offer fast access to information on securities balance. On September 25, 2009 NDC and SWIFT signed an Agreement which allows NDC’s counterparties to access SWIFT and securities settlement infrastructure through a new channel based on Alliance Lite internet technologies. Alliance Lite provides easy, secure and low-cost access to SWIFT. Advance technical works will be completed in 1Q 2010.

3. Corporate Governance

On 10 August, 2009 the company completed the reorganization of NDC Not-for-Profit Partnership into NDC Closed Joint Stock Company.

4. International Cooperation

- For the first nine months of 2009, in its role as Russia’s national numbering agency, NDC assigned international ISIN and CFI codes to 369 Russian securities and withdrew ISIN codes from 170 Russian securities. As of 30 September, 2009, NDC received and processed 28,772 requests on financial instruments (including requests on the same instrument sent by different clients). In the course of processing, the company determined that there were requests for information on 10,259 instruments. It was determined that 739 instruments did not have CFI codes including 191 instruments which also did not have ISIN codes. 232 instruments had CFI codes which did not conform to ISO 10962 and the Federal Financial Markets Service’s qualification requirements (”Provision for Foreign Financial Instruments as Securities” approved by FFMS Order #07-105/pz-n of Oct. 23, 2007). Another 9,288 instruments had CFI codes which conform to the FFMS qualification requirements for foreign financial instruments. So in comparison with the last year’s results a number of foreign financial instruments corresponding to qualification requirements rose 13.56% for January-September 2009 (8,179 foreign financial instruments as of 31 December, 2008); the number of foreign financial instruments which do not conform to qualification requirements decreased 29.38% for the first nine months of 2009. - On 17 September, 2009 Hong Kong Securities Clearing Company Limited (HKSCC), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), and NDC signed a Memorandum of Understanding (MOU) on cooperation and the exchange of information. - On 14-18 September, 2009 NDC and MICEX Settlement House CJSC took part in Sibos 2009, one of the biggest international forums for financial market participants. The two companies represented Russian settlement and depository infrastructure and to present new settlement services to international financial institutions.

Note

Value of securities held in NDC accounts is an operational indicator which does not include the market value of other assets held in issuers’ accounts. The value of shares and units of Unit Investment Trusts is based on market value, and the value of bonds is based on nominal value.

About NDC

“The National Depository Center” (Closed Joint Stock Company) is the largest settlement depository in Russia, servicing the full range of debt and equity securities of Russian issuers. NDC provides storage of global certificates and depository accounting for 99% of corporate bond issues, sub-federal and municipal bond issues. It services 100% of transactions conducted in the federal bond and the Bank of Russia bond markets, more than 99% of transactions conducted in the corporate and regional bond markets, and more than 99% of stock exchange transactions with equities and OTC trades. The international rating agency Thomas Murray has assigned NDC an АА- rating as a central depository. NDC is Russia’s national numbering agency, and the substituting numbering agency for the CIS, authorized to assign the international ISIN and CFI codes.

Among NDC’s shareholders are MICEX (50,1727% of shares), Bank of Russia (42,2997% of shares) as well as GPB (OJSC) (Gazprombank), Evrofinance Mosnarbank, ROSBANK (OJSC JSCB), JSC VTB Bank, Bank of Moscow, JSC Rossiyskiy Kredit Bank, Vnesheconombank, ING Bank (Eurasia) ZAO, JP Morgan Bank International LLC, ZAO UniCredit Bank, Deutsche Bank, and Sberbank. NDC has stakes in Depository Clearing Company CJSC (37.29%), in Settlement Depository Company CJSC (28.54%) and in Bank “National Clearing Centre” CJSC (0.27%).

For further information about NDC: www.ndc.ru, or NDC Public Affairs Division: +7-495-232-0910, pr@ndc.ru

Source: NDC Public Affairs Division

For further information about NDC: https://www.ndc.ru, or NDC Public Affairs Division: +7-495-232-0910, pr at ndc.ru