Best Bank:
Hansabank
Best Debt House:
UBS Warburg
Best Equity House:
Trigon Capital
Best M&A House:
Trigon Capital
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May: widening the focus in debt |
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Throughout 2000 and 2001, Estonia’s Hansabank has notched a notable list of achievements and strong financial results. A positive economic outlook in Estonia and the Baltics contributed to an increase of loans to clients of 41.6% on 1999, while deposits also grew encouragingly. Overall, Hansabank finished 2000 with a record profit and has continued to perform admirably since the turn of the year.
In keeping with the main theme of the Nordic region, Hansabank has made great progress with its electronic and internet banking strategies. It launched its internet banking site, Hanza.net, and by the end of 2000, some 17% of the bank’s customers were transacting business online. Hansa is hopeful that the WAP-based version of the site will attract similar levels of business in future, though this is yet to take off in quite the same way.
All this new technology has had a profound effect on Hansa’s branch network. The bank has managed to reduce its number of local centres, hopefully having a positive effect on the bank’s costs. Hansa prefers to see its branches as customer advice centres, rather than merely locations to enact transactions, with branch staff offering financial counselling to customers, including investment advice.
Hansa is very active in the SME markets, acting as an intermediary for the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) in the provision of credit for small and medium-sized companies, totalling e20 million. The bank is now looking to further develop its range of products and services for its business clients, and will be increasing its number of business client managers.
Best debt house goes to UBS Warburg. In a slow year for debt financing in Estonia, UBS Warburg brought its considerable expertise to bear for the one bond issue of the year. On January 26 2001, a two-year-and-two-month issue was announced for AS Hansabank, with UBS Warburg as the sole bookrunner. This successful deal offered a coupon of 6% and was worth e70 million ($60.2 million).
In Estonia, the main foreign investment banks have been trying to gain a foothold in the mergers and acquistions market but, so far, have yet to make a significant impact. Local players still hold the upper hand, for now. The market leader in M&A in Estonia is Trigon Capital. Suprema has made an assault on Trigon’s position but with little success. Both Suprema and the foreign competition may have to focus their efforts on privatization to make their mark.
Trigon has reached the top and stayed there by handling the largest of the limited transactions in Estonia in the past 12 months. Major deals included the acquisition of Reval Hotel Group by Linstow and the acquisition of EMV by Skanska. Trigon also advised on the acquisition of minority shareholder stakes in Rakvere by HK Ruokatalo and the acquisition of Vakaru Automagistrale by Lemminkainen. Jason Grenfell-Gardner, partner and managing director at Trigon Capital in Tallinn, admits: “There have not been any serious public issues and the market seems more geared towards taking issuers private than anything else.” Against this background, Trigon Capital has done well to emerge as the clear leader.
Trigon Capital’s strength also extends to the equity arena. Trigon beats off strong challenges from the likes of Hansabank in this area, being a dominant force in the private equity market and one of the leading players in the secondary markets. Trigon is among the strongest arrangers of private equity in the Baltic region as a whole, as well as its home market of Estonia. Transactions in 2000 included deals for travel guide publisher In Your Pocket Group, worth $4.6 million, and IT company, Microlink, valued at $3.5million. Trigon Capital has also played a key part in taking a number of companies private from the Estonian stock exchange.
