SIBACADEMBANK...

We continue to like the Sibacadembank story.  They announced  their
intention to raise $2bn between now and the end of 2007 -  this will
come from Eurobonds, syndicated loans, and rouble  bonds. We feel this
will actually help pull spreads tighter as  bonds currently trade wide
due to lack of investor awareness, a  condition which will change as
the
bank grows and supply comes  on board.

     SIBAC 9.00 '09....101-101 1/2 5X5                  8.55- 8.33 
     SIBAC 12.00 '11...104-104 7/8 5X5 (lowertier2)    10.96-10.74  

Sibacadembank, the largest bank in Siberia, is merging with UralVTB,
the
largest  bank in the Urals. Upon completion of the merger, which has
been approved by shareholders of both banks and is expected to close by
yearend 2006, the combined bank is expected to have the following
profile:

 - the name will be changed to Ursa Bank
 - expected yearend 2006 assets of $3.5bn
 - EBRD will maintain a blocking stake in the bank (25% + 1 share)
 - The bank would rank nationally in:
      - top 20 by asset size
      - top 10 by size of retail loan portfolio
      - top  5 by number of branches

By Eric Jayaweera