MOSCOW – The National Depository Center (NDC), Russia’s only settlement depository servicing the full range of securities issued by Russian issuers, has announced that as of 31 Oct., 2006, the value of securities on deposit reached RUR2.94 trillion, or US$109.8 billion. The market value of shares in NDC custody reached RUR915 billion (up 257% for the first ten months of 2006). This is equal to the share of corporate, municipal and federal bonds (31% of all assets). The number of individual securities deposited with NDC reached 156 billion (a 206.2% increase since the start of the year). The value of Unit Investment Trusts on deposit with NDC also continues to grow dramatically, by 485.3% for the first ten months of 2006.
Since 2002, the total nominal value of global certificates for corporate and regional bonds on deposit with NDC has risen 10-fold, and since January 2006 by 43%, from RUR700 billion to RUR1.021 trillion. The value of corporate bonds reached RUR790 billion and of regional bonds RUR231 billion. Some of these bonds are held in issue accounts, and are in the process of placement or have already been redeemed or paid off by the issuers. As of 31 Oct., 550 corporate, sub-federal and municipal bond issues were held by NDC in mandatory centralized custody, on behalf of 376 issuers.
NDC’s operational performance also shows positive trends. The market value of securities transferred during inventory operations from 1 Jan. to 31 Oct. exceeded RUR22.6 trillion. This is 116% more in comparison with the same period of 2005 (RUR10.46 trillion). The number of inventory operations for this period reached 1.5 million, or 70.5% more than in the same period of 2005 (881,300 operations). Securities transferred during inventory depository operations for the first ten months of 2006 numbered over 528.7 trillion. This is 12% more than the 472.8 trillion securities transferred in January-October 2005.
In 2006 there has been a marked trend towards greater liquidity among NDC-held securities.
In particular, from 1 Jan. to 31 Oct., OJSC Gazprom shares (issuance code RU0007661625) on NDC client accounts rose from 0 to 5.75% (1,360,912,601 shares) of total shares issued,
OJSC LUKoil shares (issuance code RU0009024277) held on NDC client accounts rose from 1.73% to 3.56% (30,316,956),
Sberbank shares (issuance code RU0009029540) held rose from 4.9% to 5.85% (1,112,210),
OJSC Rostelecom shares (issuance code RU0008943394) held rose from 17.74% to 39.9% (290,765,457),
OJSC Tatneft shares (issuance code TATNP/03) held from 20.93% to 26.28% (38,763,950)
CJSC Polyus Gold shares (issuance code POZO) held rose from 0 to 4.34% (8,267,650)
Value of the securities on deposit 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 nominal value.
Not-for-Profit Partnership «The National Depository Center» (NDC) is a settlement depository of MICEX Group, and is Russia’s largest settlement and safekeeping provider in terms of assets held and the only national securities settlement system handling the full range of Russian issue-grade securities. NDC is an authorized depository for most issues of state, corporate, municipal and sub-federal bonds. It services 100% of deals conducted in the state bonds market and, during the most recent three months, more than 95% of turnover in corporate shares and bonds, and sub-federal and municipal bonds.
Among NDC’s founders are Bank of Russia and MICEX CJSC. The members of Non-Commercial Partnership National Depository Center include Bank of Russia, MICEX CJSC, Sberbank, International Moscow Bank, JP Morgan Bank International LLC, Vneshtorgbank OJSC, Bank Rossiysky Credit OJSC, Evrofinans Mosnarbank OJSC, Rosbank, Gazprombank CJSC, ING Bank Eurasia CJSC and Deutsche Bank LLC.