otkritie capital

Realizing
Opportunities
OTKRITIE
CAPITAL
otkritie.com
ABOUT US
“We work in good faith and professionally, and are ready to use unconventional and bold approaches.
We make decisions promptly to meet and exceed our clients’ expectations.”
Ruben Aganbegyan Chairman of the Managing Board, CEO of Otkritie FC
Otkritie Capital is a leading Russian institutional broker which provides a full range of investment banking services including,
high quality independent research, securities trading, public debt financing and M&A advisory services.
In providing its clients with access to local and global stock exchanges, Otkritie Capital combines conventional methods and state-of-the-art technologies.
The company is able to accomplish certain transactions within just 0.003 seconds.
Being a private company, Otkritie Capital can handle the decision-making process with flexibility and within short timeframes.
Otkritie Capital is the leader in terms of Russian corporate securities trading on the London Stock Exchange, and accounts for 2% of the total transactions on LSE. In 2011,
Otkritie Capital’s trading volume totaled $1.8 trillion.
Otkritie Capital is ranked number one in terms of Russian securities trading on MICEX and RTS, and is the fourth Russian investment company licensed to operate in the USA.
Otkritie Capital is among the TOP-3 FORTS players in terms of trading volume.
The company’s research analysts provide in depth coverage of 100 corporates.. The company has been able to build a truly unique team where both newcomers and wellestablished professionals (many of whom are winners of annual Institutional nvestors awards (institutionalinvestor.com)) deliver an exceptional performance.
In addition to conventional investment banking products, Otkritie Capital offers its clients depository and broker-dealer services, including trading in equity securities
and derivatives, and repo transactions.
Otkritie Capital Group includes Otkritie Trading (Russia), Otkritie Securities Limited (UK), Otkritie Finance Limited (Cyprus), and Otkritie Inc. (USA).
For more information, please visit www.otkritie.com
OTKRITIE CAPITAL
1
OFC HISTORY
• 1995 Establishment in Russia.
Equities and exchange-traded derivatives
• 1999 Pioneers of brokerage.
One of the first brokers to offer DMA to MICEX
and electronic brokerage for clients
• 2005 Asset management.
Fund management, services for institutional
and individual clients
• 2006 Investment banking.
IPO, advisory, and custody services
• 2007 Global markets.
Expansion into global markets via acquisition
of a UK-based FSA-regulated brokerage firm
• 2008 Commercial banking.
Bank loans and deposits, bank guarantees,
foreign exchange, banknote business
• 2009 New investor.
VTB Bank acquired a 19.9% stake in Otkritie FC
Acquisition of banks.
Acquisition of a 50% stake in Bank Petrovsky (St. Petersburg)
• 2010 Consolidation of the Corporation’s bank assets.
“One stop shop” universal bank with a wide range of financial
services offered to individual and corporate clients
TOP-10 player in terms of trading volumes
and number of clients in Russia – since 1999;
• 2011 B
ank Gubernsky joined Otkritie Bank under the financial
restructuring procedure. Otkritie Bank was ranked among the
TOP-30 Russian leading banks in terms of assets and shareholders’
equity (according to the Bank of Russia). IFC becomes a new
shareholder of Otkritie Bank with a 14.30% stake.
TOP-10 player in terms of trading volumes
in depository receipts at LSE – since 2009.
• 2012 FC Otkritie acquired 19.9% shares of Nomos Bank and plans
to consolidate 100% shares within two years. As a result,
Otkritie Bank will rank among TOP-5 Russian banks.
TOP-10 player Russian bond market since 2010
OTKRITIE CAPITAL
Source: Otkritie Securities Ltd data
2
CORPORATE STRUCTURE
BENEFICIARIES
Vadim Belyaev
Boris Mints
43,75%
VTB Bank
Anatoly Chubais
15,92%
23,90%
Others
2,19%
14,24%
OTKRITIE FC
35,8%
100%
OTKRITIE Debt
Center LLC (Russia)
OTRITIE Insurance
JSC (Russia)
FINANCIAL
SUPERMARKET
24,20%
14,30%
OTKRITIE
Bank JSC
Corporation “Deposit Insurance Agency”
100%
25,7%
100%
OTKRITIE Asset
Management Ltd
OTKRITIE Brokerage
House JSC
International Financial Corporation
OTKRITIE Financial Corporation is a leading Russian banking group offering its institutional, corporate, and
private clients a full range of financial services, including investment banking, commercial banking, brokerage,
access to major Russian and international capital markets, and investment management services.
OTKRITIE CAPITAL
100%
100%
OTKRITIE Trading
Ltd
99,99%
OTKRITIE Capital
LLC
100%
100%
OTKRITIE Securities
Limited (UK)
OTKRITIE Finance
(Cyprus) Ltd.
100%
OTKRITIE Inc.
(USA)
OTKRITIE CAPITAL
3
PRESENCE IN KEY FINANCIAL CENTERS
Russia
•
•
•
•
UK
Headquarters of Otkritie Capital – DMA, Sales
& Trading, Investment Banking, Research
•
Financial supermarket: the retail network of Otkritie
Bank includes more than 200 offices in 37 regions,
Retail Brokerage, Asset Management, Insurance
•
USA
Authorised and regulated by the Financial
Services Authority
•
Member of FINRA
DMA, Sales & Trading, Prime-Brokerage,
Research
•
Sales & Trading
•
DMA
resence of Otkritie Capital
P
and the financial supermarket’s
sales and service network in Russia
Presence outside Russia
OTKRITIE CAPITAL
Cyprus
•
Regulated by CySEC
•
Sales & Trading
•
Asset management
4
OTKRITIE CAPITAL SERVICES
• Otkritie Securities Limited («OSL») is the UK-based and
FSA-regulated subsidiary of Otkritie. OSL is a member of
LSE, Deutsche Boerse, and Chi-X multilateral trading facility.
OSL is focused on providing brokerage services to global
institutional clients.
• Global Electronic Trading Services (GETS) offers
comprehensive access to more than 30 equity and derivatives
markets with a focus on Russia and Emerging Markets
• Exchange Traded Derivatives, part of GETS, enables clients to
trade electronically a wide range of derivative instruments globally,
including Russian index futures, index options, futures and options
on local shares and shares of Russian entities traded on other stock
exchanges (in London, Frankfurt and New York)
• Equity Sales & Trading is one of the core business lines offering
investment advice, research and care execution in Russian equities
from Moscow, London and New York
• Institutional Equity Derivatives team helps our clients
implement individual strategies in the Russian and CIS
markets to achieve the desired risk/return profile of their
investments. The instruments covered include optionsб
futures and forwards (both listed and OTC) on all Russian
and CIS-based companies.
• Our Fixed Income Sales & Trading team is one of the leading market
participants in the Russian debt markets and ranks among the top three
domestic companies in terms of turnover on the secondary bond market
on MICEX
• Money Markets products enable clients to hedge currency risk, manage
liquidity and offer FX trading in major global pairs including USD/RUB,
EUR/RUB
OTKRITIE CAPITAL
• Otkrite Inc. is Otkritie’s US subsidiary licensed by FINRA
to operate in the US stock market. Otkritie Inc. offers
investors, institutional and corporate clients in the USA
the full range of investment banking services with a focus
on Russian markets.
OTKRITIE CAPITAL
SERVICES
• Custody, Clearing and Settlement services on over
30 exchanges and across multiple asset classes
• Multicurrency account structure complemented by DMA
and EDA to USD/RUB will help optimise your currency risks
• DRs creation and cancellation service allows arbitrage
traders to obtain maximum upside
Innovative, cutting edge Risk Management tools
enhance collateral utilisation
• Securities Lending and Equity Financing department
having extensive relationships with major market lenders
complemented by our inventory in Russian names offers
seamless margin trading opportunities
5
FACTS & FIGURES 2012
Leading derivative broker
on FORTS** with market
share of more than 25%
1st place* on
RTS Standard
#1
Leading derivatives
broker on LSE*
(IOB electronically traded)
#3
Fitch rating
of Otkritie Bank – watch
positive outlook
B
OTKRITIE CAPITAL
#1
Fourth place according
to bond arrangers’ rating:
subfederal/municipal
sectors, as of end of 2012***
(data from
www.cbonds.ru)
#4
S&P rating of Otkritie
Bank – stable outlook
B
Leading broker
on FORTS**,
options section
#1
Individual reliability
rating from National
Rating Agency for
OTKRITIE broker
in Russia
ААА
Summary rating
of commercial paper
program arrangers
(data from
www.cbonds.ru)
# 10
Leading broker
on MICEX*,
equity section
#1
Ranking among Russian
asset management
companies according to
the National Rating Agency
(data from www.nra.ru)
AA+
Ranking among Russian
banks in terms of assets
01.10.12
# 32
By trading volume in the
Ukrainian exchange-traded
derivatives sector**
#4
* Market ratings based on the trading volume in money terms
** Market ratings based on the number of deals
*** Excluding Moscow Financial Agency (Mosfinagentstvo)
Source: www.rts.micex.ru; www.londonstockexchange.com; www.ra-national.ru
6
SENIOR MANAGEMENT TEAM:
OTKRITIE CAPITAL
Ruben Aganbegyan – Chairman of the Managing Board, CEO of Otkritie FC
Ruben Aganbegyan Appointed CEO of Otkritie Financial Corporation in October 2012. Before Otkritie, Mr. Aganbegyan
headed MICEX (from September 2010), leading it through the effort of merging with RTS in 2011. The merger resulted
in the establishment of a new market institution that has become an international trading centre. In 2003-2010,
Mr. Aganbegyan was in charge of Renaissance Capital’s Russian business, where he was responsible for expanding
and strengthening relationships with key customers and oversaw public relations and liaison with state authorities.
In 2002-2003, he served as Managing Director for Project Financing and Head of Investment Banking with Troika Dialog.
In 1997-2002, he was Co-head of Credit Suisse First Boston in Russia. In the 1990s, he worked for such companies as
PriceWaterhouse, Clifford Chance and Credit Suisse Financial Products (Moscow). Mr. Aganbegyan graduated from
Moscow State Law Academy in 1995.
Nikolay Katarzhnov – Executive Director Otkrite Capital
Nikolay graduated from the International Economic Relations Department of the Finance Academy under the Government
of the Russian Federation. Before joining Otkritie, he was a trader with RN-Invest (2007-2008) and managed share
portfolios with Leader management company (2008-2009).
Georgy Mirel – Managing Director, Head of Equity and Equity Derivatives Trading
Georgy has been working in the financial sector since 1996. He started as a trader for government short-term and federal
loan bonds at Alef Bank. He took his first job while studying at the Finance Academy under the Government of the Russian
Federation. Georgy majored in World Economy and successfully graduated from the academy in 1999. From 1998 to
2001, he worked for Banque Société Générale focusing on debt and currency instruments. From 2001 to 2003, Georgy was
studying at the Business School of Columbia University in New York from which he obtained MBA in Finance in 2003. From
2003 to 2004, he was a trader for fixed income instruments with Citigroup. From 2004 to 2010, he was heading options
trading in Troika Dialog. Georgy has been with Otkritie since 2010.
OTKRITIE CAPITAL
7
SENIOR MANAGEMENT TEAM:
OTKRITIE CAPITAL
Evgeny Kunts – CEO, OSL
Evgeny Kunts joined the Otkritie Group of companies in 2007, firstly sitting on the Board of Directors for Otkritie Finance Cyprus, and then in
2008, held the position of Deputy CEO with oversight responsibility for legal, compliance and finance at Otkritie Securities Ltd (OSL). Mr Kunt
has now been appointed the CEO of OSL, which came into effect in January 2013. Previous to this, Mr Kunts held the position of Executive
Director at BrokerCreditService (CYPRUS) LTD, where he was responsible for corporate development activities. He has also held a number of
senior board and committee positions in other companies. Mr Kunts holds a DBA in Strategic Management of Financial Services Providers from
the International School of Management (Paris, France) and an MBA in Strategic Management from Maastricht School of Management. He
has also been certified as a financial services auditor (CFSA) by the Institute of Internal Auditors and is a member of the Chartered Institute for
Securities & Investment, UK.
J.P. Natkin – CEO, Otkritie Inc.
J.P. Natkin joined Otkritie from Credit Agricole Cheuvreux where he ran the firm’s emerging market sales desk before serving as Head of Client
Services for the Americas. Prior to that he was Head of Sales at URALSIB for seven years during which time he was ranked third globally for both
Russia and EMEA sales by Thomson Extel. He also previously managed the EMEA equity sales team at ING in New York and helped launch the
US broker-dealer operations for both Troika Dialog and Renaissance Capital.
Alexander Burgansky – Managing Director and Head of Research
Alexander Burgansky joined the company in October 2010 as Head of Research and Head of Oil and Gas Research. Prior to this,
Alexander spent six years with Renaissance Capital, where he served as both Head of Equity Research and Global Head of Oil
and Gas Research. He headed the #1 EMEA Oil & Gas Team in 2008, 2009 and 2010.
Alexander has a PhD in Engineering from Bauman Moscow State Technical University and an MBA
in Finance from the University of Rochester.
OTKRITIE CAPITAL
8
SENIOR MANAGEMENT TEAM:
OTKRITIE CAPITAL
Sergey Sinkevich – Strategy Director, Managing Director, Electronic Trading Division Head
Sergey Sinkevich received a Bachelor of Economics from New York University in 2000.
After graduation, Mr. Sinkevich worked for UBS with a fixed income instruments analysis team,
developing analytical and marketing materials for brokers and their clients.
From 2002 to 2010, Sergey was in charge of retail loan products sales at Delta Bank/GE Capital, managing the company’s regional representative
offices in Tatarstan and the Northwestern Federal District. During the financial crisis of 2008, he implemented an alternative current accounts
and time deposits funding strategy for GE Money Bank, replacing a significant part of the bank’s balance sheet’s funding with ruble funds.
From November 2010 t0 January 2013, Mr. Sinkevich headed the Moscow Exchange’s Primary Market Department. Under his guidance, the
Moscow Exchange was able to significantly improve its positioning in international markets and provide foreign dealers with a correct perspective
on developments in the Russian capital market, increasing the number of foreign dealers trading in stock, futures and currency on the Moscow
Exchange. Also, specific steps were taken to form a primary stock market in Russia, such as establishing a central securities depository, working
with global custodians/banks, reforming the listing system and establishing a premium segment, acquiring large global liquidity providers,
creating internal investors, and promoting positive changes among investment bankers and potential issuers.
On 25 January 2013 Mr. Sinkevich joined Otkritie Capital as Head of DMA, supervising interaction with stock exchanges and regulatory
authorities, and business development.
Mikhail Avtukhov – Managing Director Head of DCM Department
Mr. Avtukhov joined OTKRITIE FC in 2010 when he was named Managing Director and Head of the Fixed-Income Trading Department
of OTKRITIE Investment Bank. Before that, he was Head of Department and Vice-President of the Investment Department in 2009-2010. Earlier,
he was appointed to the position of Vice-President at Svyaz-Bank, where he worked from 2007-2009. Before that, he worked from
2004-2007 at AKB Soyuz as Head of the Fixed Income Department. From 2003-2004 he was Head of the Operations Division for State and
Corporate Securities, Fixed Income Department of Guta Bank, where he was hired in 2002. Mikhail Avtukhov was employed from 2001-2002
at AVK Securities, where he was named Head of the Brokerage Division of the company’s Moscow branch in 2002. As for his educational
background, Mr. Avtukhov graduated in 2000 from the Moscow State University of Design and Technology with a major in Economics and
Management.
OTKRITIE CAPITAL
9
RANKING AND MONTHLY
TRADING VOLUMES (MILLION USD)
MICEX (equity section)
MICEX (FX section, USDRUB)
M$
M$
FORTS
LSE (IOB electronically traded)
M$
M$
OTKRITIE CAPITAL
Source: www.rts.micex.ru, www.londonstockexchange.com
10
DIRECT MARKET ACCESS
OSL provides access to more
than 30 equity and derivative
markets. As a company accredited
by leading global exchanges, we
ensure compatibility with all major
international trading systems and
global networks.
• D
irect Market Access (DMA) to
all leading equity and derivative
markets and multilateral trading
facilities
• O
SL uses state-of-the-art
technologies to process
electronic orders, transmit
market data, and ensure highspeed electronic access to
exchanges
• E
xecution Desk Access (EDA)
– routing orders to our trading
desk for execution with real-time
status updates on the client side
Equities:
Derivatives:
Markets
MICEX
FORTS (Russia)
MexDer(Mexico)
MICEX Currency/Futures
NYSE Euronext
HESE (Finland)
RTS Classica
MSE (Canada)
SFE (Australia)
RTS Standard
ICE Futures Canada (Canada)
KLSE (Malaysia)
LSE
NASDAQ OMX (USA)
SGX/SIMEX (Singapore)
Deutsche Boerse (Germany)
CME Group(USA)
Euronext Amsterdam
(Netherlands)
NYSE/NASDAQ/AMEX
ICE Futures U.S. (USA)
Euronext Brussel (Belgium)
Euronext Paris (PEX)
ICE Futures Europe and other
Euronext Lisbon (Portugal)
TSX (Canada)
LME on-exchange traded
contracts (Great Britain)
BMEF (Brazil)
SAX (Sweden)
EUREX (Europe)
SAFEX (South Africa)
SGX (Singapore)
MEFF (Spain)
TURKDEX (Turkey)
HKX (Hong Kong)
IDEM (Italy)
UX (Ukraine)
WSE (Poland)
HKFE(Hong Kong)
AEX (Amsterdam)
TFE (Japan)
Bovespa (Brazil)
OSE( Japan)
Oslo (Norway)
TOCOM (Japan)
HESE (Finland)
OBX (Norway)
Chi-X (Europe)
WSE (Poland)
TAIFEX (Taiwan)
OTKRITIE CAPITAL
11
DIRECT MARKET ACCESS
RTS
LSE
XETRA
MICEX
FORTS
1
3
2
Broker
Partners
OTKRITIE
Securities Limited
(UK)
BATS Chi-X
Europe
Brokerage House
Otkritie
3
CIS
Markets
30 + markets
Client
1
OSL is a UK registered, FSA authorised broker
2
Otkritie is a member of The London Stock Exchange, EDX London,
Deutsche Boerse & Chi-X Europe (MTF) and offers access to global markets
3
OSL provides direct market access to more than
30 equities and derivatives markets
Bank Otkritie
FX DMA
MICEX
SELTS
Technologically independent trading and operation solutions
integrated with client systems
OTKRITIE CAPITAL
12
TECHNOLOGY AND CONNECTIVITY
Low Latency & Algo Trading
• D
edicated, robust and fully
independent infrastructure
• E
xchange collocation solutions for
trading at MICEX, RTS/FORTS, LSE
and other global markets
• T
he minimum of intermediate hubs
and systems involved, and fully
redundant automated trading systems
ensures efficiency and speed of data
processing and transmission
• O
TKRITIE Industry-standard
technology ensures reliable
connectivity, smooth and low latency
transmission of market data and
handling of orders with effective
support for active trading styles
QuantFEED, the end-to-end ultra low
latency market data feed, captures raw
data from within the exchange, performs
microsecond decoding and delivers
normalised data through a single API
(C++, Java or C#).
OTKRITIE CAPITAL
LONDON
DATA CENTER 1
MOSCOW
DATA CENTER 1
OSL proximity hosting
OSL proximity hosting
MICEX
OSL co-location
option
OSL
Low Latency
Network
LSE
LONDON
DATA CENTER 2
MOSCOW
DATA CENTER 2
OSL proximity hosting
OSL proximity hosting
RTS
FORTS
OSL co-location
option
13
equity and trading
OTKRITIE presence on global equity
and derivatives markets
UK operations represent about
20% of our clients and 15%
of our trading volume
European operations represent
about 14% of our clients and 10%
of our trading volume
Operations in Russia represent
about 60% of our clients and 70%
of our trading volume
Otkritie equity sales and trading team
is a market leader and successfully
helps clients identify new investment
opportunities in Russia and other CIS
nations.
Otkritie offers global hedge funds, as well
as corporate and private investors, unique
information and ideas that help them
choose an optimal deal strategy. Thanks to
knowledge of local markets, the company
can assess market risks and use its own
capital to provide liquidity to its clients.
Otkritie Capital is the largest FORTS
operator in terms of exchange-traded
options trading, and is among the TOP-3
FORTS players in terms of total trading
volume.
USA operations represent about 5%
of our clients and 3% of our trading
volume
OTKRITIE CAPITAL
Asian operations represent
about 1% of our clients and 2%
of our trading volume
Our company offers a wide range of
derivatives, including Russian index futures,
index options, futures and options on local
stocks and stocks of Russian companies
listed on other exchanges (in London,
Frankfurt, New York). We also provide
liquidity for derivatives covering more
than 30 issuers and implement individual
strategies when using OTC instruments
that are pegged to separate assets or asset
baskets.
14
Equity sales team
Global sales force with key relationships across regions
Key Sales Personnel
MOSCOW
Michael Stein: Head of Equity Sales, Moscow.
Focus: (UK, US, Switzerland, Singapore)Previously: Partner with
UFG-Deutsche Bank. 10 Years experience selling Russian equities.
Pavel Dubovets: Director, Equity and Derivatives Sales,
Moscow.
Focus: (Russia, UK)Previously: Sales at Troika Dialog and NonGovernment Pension Fund of the Electric Power Industry. 17 Years
experience selling Russian equities.
Key Facts
•
Global Distribution Network
•
Extel Ranking
•
Wide reaching and deep investor base
– Distribution offices located in Moscow, London and New York
– 5th place in Russian Extel Survey
Mlada Yegikyan: Director, Moscow.
Focus: (Russia, UK, France, Estonia)Previously: Renaissance
Capital, Goldman Sachs (sell-side research analyst)
Alexey Artemenko: Director, Moscow.
Focus: (Kasakhstan)Previously: Aton, Renaissance Capital
LONDON
Berthold Maier: Director, London.
Focus: (UK, Germany, Austria)Previously: Renaissance Capital,
10 years as a long-short equity portfolio manager for BlueCrest,
Griffin, Generali
Vinay Ruparelia: Director, London.
Focus: (UK, Asia)Previously: RenCap, Morgan Stanley, Dresdner
Kleinwort. 10 years experience covering Russia
NEW YORK
J. P. Natkin, CEO, New York Office.
Focus: (Americas, Asia)Previously: Credit Agricole, UralSib, Troika.
>20 years experience in EM and 15 years in Russia.
OTKRITIE CAPITAL
– 500 clients including traditional long institutional investors (including
Russia-dedicated funds, EMEA funds and GEM funds), regional and global
hedgefunds, family offices and high net worth individuals
15
FIXED INCOME SALES & TRADING
Fixed Income Trading & Sales
• A leading player in Russian and CIS bond markets
OTKRITIE FC’s trading volume,
in billion RUB (MICEX bond market)
• A
team of highly skilled professionals specializing
in a wide range of fixed income securities
• T
he company ranks among TOP-3 Russian
traders in terms of secondary market trading
volumes
–M
arket share in domestic markets (MICEX)
was 6.1% in 2011
• A full range of services to support
fixed income activities:
–D
ebt securities denominated in local
currency and international Eurobonds
Negotialed Mode
Main Trading Mode
–S
overeign, municipal and corporate bonds
–E
fficient and timely order execution
–T
rade idea and new issue origination
OTKRITIE FC’s market share
(MICEX bond market)
FC Otkritie Market Mode
OTKRITIE CAPITAL
16
RESEARCH
Research Team
Research team headcount
is in line with competition
Alexander BURGANSKY
Head of Research, Lead Oil & Gas Analyst
12 years research experience
(ex Renaissance Capital, Credit Suisse)
40
30
Vladimir SAVOV
20
Head of Equity Research, Senior Banking Analyst
10 years research experience
(ex Credit Suisse, URALSIB, Brunswick UBS)
10
0
Otkritie
OTKRITIE
VTBR
VTBR
Equity
RenCap
enCapT
Fixed
Income
Fixed
Incom
Troika
roika
Vladimir TIKHOMIROV
Chief Economist
9 years research experience
(ex URALSIB, distinguished academic career)
Key Facts
• 95 stocks covered at present
– Only 15 stocks were covered in early 2009
– Increased focus on second-/third-tier names and CIS
• Comprehensive product line
– Daily reports, strategy and macro reports, flashnotes,
trading ideas, week-ahead preview
• Marketing efforts
– Analyst marketing and non-deals roadshows:
Moscow, Continental Europe, London, US
• Institutional investor ratings
–Alexander Burgansky was constantly rated #1 / #2
Oil & Gas analyst in 2008-2011
Maxim Grebtsov
Fixed Income Analyst.
Responsible for credit analysis of corporate, sovereign and sub-sovereign
borrowers. Over 5 years in analytics. Joined Otkritie from Svayz-Bank.
Coverage
Sergey BEIDEN
Senior Analyst Utilities
10 years research experience
(ex Metropol, DrKW, Kapital Investment Group)
Mikhail TERENTIEV
Senior Consumer Analyst
8 years research experience
(ex Nomura, Lehman Brothers)
Denis Gabrielik
Lead Mining Analyst 5 years research experience
(ex Renaissance Capital, Credit Suisse)
Alexander Vengranovich
Leading Telecoms Analyst
7 years’ experience (Renaissance Capital, NCH Capital)
OTKRITIE CAPITAL
17
Derivatives / REPO AND
STRUCTURED FINANCING
Derivatives
REPO TRANSACTIONS
Otkritie Capital is the leading FORTS player in terms of options trading
volume and is FORTS TOP-3 in terms of aggregate turnover. Otkritie Capital
is constantly adding new products to its offering and new issuers to its
portfolio, thus sustaining its leadership in the Russian derivatives market.
Repo transactions are an efficient tool to raise financing secured by
liquid assets and/or additional revenues from the securities portfolio.
We engage in repurchase and reverse repurchase transactions with
corporate, municipal and governmental bonds, sovereign and corporate
Eurobonds, equities, ADRs and GDRs of Russian and foreign issuers at
exchanges and over the counter.
Products and services
The company offers a wide range
of derivatives and related services, including:
• R
ussian index futures
• Index options
• Futures and options for local equities and Russian equities
traded in London, Frankfurt and New York
• Market-making for derivatives of more than 30 issuers
• Implementation of customized strategies using OTC instruments
linked to certain assets or asset baskets to meet individual needs
Otkritie Capital is MICEX TOP-5 in terms of repo transactions volume;
we work together with leading Russian and international companies
and have access to global markets.
Georgy Mirel
Managing Director, Head of Equity
And Equity Derivatives Trading
[email protected]
+7 495 663 88 88
Pavel Dubovets
Director, Equity and Derivatives Sales
[email protected]
+7 495 956 44 79
Nikolay Katarzhnov
Managing Director
Head of Repo and Refinancing
[email protected]
+7 495 956 44 79
OTKRITIE CAPITAL
18
DEBT CAPITAL MARKETS (DCM)
Core services provided to our clients:
Competitive advantages / Additional services
Origination and placement of bond issues
• Structuring bond issues, drafting the prospectus
and related documents, support in bond offerings
• Underwriting and distribution of primary issues
• R
endering listing agent services
• O
ffering agent services to help companies restructure public liabilities
• A
ssisting issuers in directly managing their own debt pursuant to effective
RF legislation
• P
roviding domestic ruble bond issuers with bridge financing to supplement their
working capital until: proceeds are raised from a bond placement; bond buyback
obligations are fulfilled on the secondary market; coupon yield is paid; or until
bond issue costs are redeemed (amortized)
Support on the secondary market
• Market making – raising liquidity on the fixed income market
• Advising on enhancing corporate transparency
• IR and PR assistance
Placement of treasury bonds / secondary debt offerings
• Selling bonds not floated in the course of primary offerings
or bought back from investors due to various binding terms
Notable Implemented Projects 2012
2012
Assistance in the execution of call and put options
• Optimizing the number of bonds repurchased under call
and put options
Fourth place, arranger’s rating
municipal sector (Cbonds)
top 5
Second place, underwriter’s rating
municipal sector (Cbonds)
top 5
Fifth place, underwriter’s rating
(Cbonds)
* Excluding Moscow Financial Agency (Mosfinagentstvo)
OTKRITIE CAPITAL
2012
Nizhny Novgorod region
Saint Petersburg
Orient Express Bank
360 000 000 $
12 000 000 000 RUR
8 000 000 000 RUB
7 000 000 000 RUB
6 000 000 000 RUB
Bond issue, 01
Bond issue, 03, 04
Bond issue, 34008
Bond issue, 25039
Bond issue, BO4, BO10
Lead manager
Lead manager
Lead manager
Lead manager
Lead manager
2012
2012
2012
2012
Mechel
Russian Standard Bank
Stavropol Krai
Volgograd region
Orenburg region
5 000 000 000 RUB
5 000 000 000 RUB
5 000 000 000 RUB
5 000 000 000 RUB
4 000 000 000 RUB
Bond issue, BO4
Bond issue, BO6
Bond issue, 34001
Bond issue, 35002
Bond issue, 34001
Lead manager
Lead manager
Lead manager
Lead manager
Lead manager
Fifth place, arranger’s rating
(Bloomberg, Cbonds)
top 2
2012
FC Otkritie
2012
top 4
2012
2012
Prime finance
2012
2012
2012
2012
2012
TCS Bank
OTKRITIE Bank
Sverdlovsk region
Vneshprombank
YATEC
3 500 000 000 RUB
3 000 000 000 RUB
3 000 000 000 RUB
3 000 000 000 RUB
3 000 000 000 RUB
Bond issue, BO4, BO6
Bond issue, 01
Bond issue, 34002
Bond issue, BO2
Bond issue, BO1
Lead manager
Lead manager
Lead manager
Lead manager
Lead manager
Source: CBONDS Information Agency
19
DEBT CAPITAL MARKETS (DCM)
DCM 2010-2012 achievements:
Our clients represent the following sectors of the economy:
• 39 issuers
• S
ub-federal / municipal sector
• 65 deals
• F
inancial services
• 207,1 bln RUR arrised
• M
etals & Mining
• TOP-5 arranger’s rating (Bloomberg, Cbonds)
• D
evelopment
• TOP-4 arranger’s rating municipal sector (Cbonds)
• I nfrastructure and life support system
• F
ood industry
• A
gricultural sector
OTKRITIE market share
OTKRITIE market share
(municipal sector)
7,3%
92,7%
OTKRITIE CAPITAL
OTKRITIE market share
(corporate sector)
30,9%
69,1%
5%
95%
20
CORPORATE FINANCE
Services
Selected Transactions
• Mergers & acquisitions
• Private placements, debt and hybrid instruments
• IPO / SPO
• Business sale
• Financial restructuring
Sectors
• Oil & gas
• Utilities
• Infrastructure
• Financial institutions
• Retail services
OTKRITIE CAPITAL
21
CONTACTS
Moscow Office
London Office
2/4 Letnikovskaya St.,
Moscow, 115114, Russia
Tel.: +7 (495) 232 03 00
Fax: +7 (495) 777 56 14
12th Floor, 88 Wood Street,
London, EC2V 7RS, UK
Phone: +44 20 7826 8200
Fax: +44 20 7826 8201
[email protected]
www.otkritie.com
[email protected]
www.otkritie.com
www.openbank.ru
New York Office
Cyprus Office
Otkritie Inc.
750 Lexington Avenue
New York, NY 10022
Phone: +1 (646) 658-3729
Office No.2, 42, Leoforos
Amathountos, Millios Building,
Agios Tychonas, 4532 Limassol,
Cyprus
Phone: +357 2543 1456
Fax: +357 2543 1457
[email protected]
[email protected]
OTKRITIE CAPITAL
22
IMPORTANT NOTICES
This is a marketing communication as defined by MiFID Directive 2004/39/EC (the “Communication”), and has been prepared
by Otkritie Securities Limited (“OSL”) or one of its representative offices or appointed representatives or affiliates. OSL is
authorised and regulated by the Financial Services Authority (“FSA”), and is a member of the London Stock Exchange. OSL
is a subsidiary of OTKRITIE Financial Corporation JSC, which together with other subsidiaries specialise in a full range of
investment banking and prime brokerage services, and use the brand name Otkritie Capital.
The information herein is subject to change without notice and contains a summary of the subject matter, which is provided
solely for general information purposes, and does not constitute a binding commitment or agreement to provide services or
financing on the terms herein or similar terms, or any other commitment to provide services or financing of any kind. Nothing
herein constitutes a representation that any investment strategy or recommendation is suitable or appropriate to a recipient’s
individual circumstances or otherwise constitutes a personal recommendation. The Communication does not constitute
an advertisement and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial
instruments in any jurisdiction. The Communication does not form a fiduciary relationship or constitute advice. No part of the
Communication, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or
commitment or investment decision whatsoever.
Investments involve risks and investors should exercise prudence in making their investment decisions. The securities
described herein may not be eligible for sale in all jurisdictions or to certain categories of investors. Past performance is not
necessarily indicative of future results. The value of any investment or income may go down as well as up and you may not
get back the full amount invested. Investing in emerging markets such as Russia, other CIS countries and emerging markets
securities involves a high degree of risk and investors should perform their own due diligence before investing. Transactions
and investments in emerging markets instruments should be made only by investors with sufficient ability to appreciate the
special risks, and the resources bear any losses that may be incurred in such markets.
© Otkritie Securities Limited 2012. All rights reserved.
OTKRITIE CAPITAL
23
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