Sberbank - Annual Report 2010 - 19 Other Borrowed Funds

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# 19 Other Borrowed Funds

In millions of Russian Roubles | 2010 | 2009
--- | --- | ---
Loan participation notes issued under the MTN programme | 153,273 | 46,149
Syndicated loans received | 96,904 | 58,703
Other long-term borrowings | 20,588 | 10,361
Total other borrowed funds | 270,765 | 115,213

At 31 December 2010 included in loan participation notes issued under the MTN programme are notes issued by the Group under USD 10 000 million loan participation notes MTN issuance programme. In May 2006 the Group issued the first series of notes under this programme in the amount of USD 500 million equivalent to RR 13 472 million as at the date of issue. As at 31 December 2010 these notes were accounted for at amortised cost of RR 15 539 million (2009: RR 13 624 million). The notes mature in May 2013 and have contractual fixed interest rate of 6.5% p.a. As at 31 December 2010 the effective interest rate on the notes was 6.6% p.a. (2009: 6.6% p.a.).

In November 2006 the Group issued the second series of loan participation notes under the MTN issuance programme in the amount of USD 750 million equivalent to RR 19 965 million as at the date of issue. As at 31 December 2010 these notes were accounted for at amortised cost of RR 23 098 million (2009: RR 20 648 million). Thenotes mature in November 2011 and have contractual fixed interest rate of 5.9% p.a. As at 31 December 2010 the effective interest rate on the notes was 6.0% p.a. (2009: 6.0% p.a.).

In July 2008 the Group issue the third series of notes under the MTN issuance programme in the amount of USD 500 million equivalent to RR 11 734 million as at the date of issue. As at 31 December 2010 this loan was accounted for at amortised cost of RR 15 843 million (2009: RR 11 877 million). This loan matures in July 2013 and has contractual fixed interest rate of 6.5% p.a. As at 31 December 2010 the effective interest rate on the loan was 6.6% p.a. (2009: 6.6% p.a.).

In October 2008 the Group received a syndicated loan in the amount of USD 1 200 million from a consortium of foreign banks equivalent to RR 32 375 million as at the date of issue. As at 31 December 2010 the loan was accounted for at amortised cost of RR 36 513 million (2009: RR 36 069 million). The loan matures in October 2011 and has contractual floating interest rate of 3 months LIBOR +0.85%. As at 31 December 2010 the effective interest rate on the loan was 1.6% p.a. (2009: 1.6% p.a.).

In July 2010 the Group issued the fourth series of loan participation notes under the MTN issuance programme in the amount of USD 1 000 million equivalent to RR 31112 million as at the date of issue. The notes mature in July 2015 and have contractual fixed interest rate of 5.5% p.a. Additional notes of USD 500 million (equivalent to RR 15 093 million as at the date of issue) were issued In August 2010 with a premium and form a single series with the fourth series issue. Additional notes have the same interest rate and maturity date. As at 31 December 2010 the notes were accounted for at amortised cost of RR 47 124 million; the effective interest rate on the notes was 5.4% p.a.

In September 2010 the Group issued the fifth series of loan participation notes under the MTN issuance programme in the amount of USD 1 000 million equivalent to RR 31 003 million as at the date of issue. The notes mature in March 2017 and have contractual fixed interest rate of 5.4% p.a. In October 2010 the Group issued additional notes for USD 250 million (equivalent to RR 7 631 million as at the date of issue) with a premium which form a single series with the fifth series issue and have the same interest rate and maturity. As at 31 December 2010 the notes were accounted for at amortised cost of RR 38 681 million; the effective interest rate was 5.4% p.a.

In November 2010 the Group issued the sixth series of loan participation notes under the MTN issuance programme in the amount of CHF 400 million equivalent to RR 12 577 million as at the date of issue. The notes mature in November 2014 and have contractual fixed interest rate of 3.5% p.a. As at 31 December 2010 the notes were accounted for at amortised cost of RR 12 988 million; the effective interest rate on the notes was 3.6% p.a.

In December 2010 the Group received a syndicated loan in the amount of USD 2 000 million from a consortium of foreign banks equivalent to RR 61 506 million as at the date of issue. As at 31 December 2010 the loan was accounted for at amortised cost of RR 60 391 million. This loan matures in December 2013 and had contractual floating interest rate of 6 months LIBOR + 1.5% p.a. As at 31 December 2010 the effective interest rate on the loan was 2.3% p.a.

During the year ended 31 December 2010 the Group partly repurchased loan participation notes, recognised at amortised cost of RR 2 123 million. The transaction was organised as a buy-out of the notes from the market. As a result of this transaction the Group has received a net loss in the amount of RR 87 million included in the Consolidated income statement (for the year ended 31 December 2009 a net gain of RR 627 million). In 2010 the Group partly disposed of the loan participation notes which were previously bought back from the market. The sale was conducted in several tranches. Amortised cost of the newly recognised liabilities comprised RR 9 392 million as at 31 December 2010. Effective interest rates varied from 2.5 % to 4.3 % p.a.

Other long-term borrowings represent funding received by the Group from foreign export agencies via foreign banks, which was used by the Group for direct lending to Russian companies in accordance with the terms of the agreements. As at 31 December 2010 these borrowings were accounted for at amortised cost of RR 20 588 million (31 December 2009: RR 10 361 million), had interest rates varying from 0.1% to 9.1% p.a. (31 December 2009: from 1.0% to 6.8% p.a.) and maturity dates from January 2011 to June 2019 (31 December 2009: from February 2010 to January 2016).

The estimated fair value of other borrowed funds is disclosed in Note 34. Currency and maturity analyses of other borrowed funds are disclosed in Note 31.

## History

- 18 Debt Securities in Issue
- 17 Due to Individuals and Corporate Customers
- 16 Due to Other Banks
- 15 Other Assets
- 14 Premises and Equipment

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