BEST BANK
Hansabank
BEST DEBT HOUSE
HVB Group
BEST EQUITY HOUSE
Suprema Securities
BEST M&A HOUSE
Citibank
Hansabank once again wins the best bank in Estonia award, having extended its lead over second-placed SEB-owned Eesti Ühispank. Total assets have increased to $11.21 billion from $4.75 billion the previous year and return on average equity is up from 19.61% to 24.6% – above Eesti Ühispank’s 21.17%. Estonia continues to dominate Hansabank’s activities, generating €29.1billion of the €54.3 billion net profit that the bank made in the Baltic republics and Russia. Indeed, client deposits increased by €158 million in Estonia during the first quarter of 2005 alone – accounting for 40% of the bank’s overall deposits growth.
There was little in the way of public debt issuance from Estonia this year, with Barclays Capital and Deutsche Bank’s €750 million FRN the one notable deal from the region – though not solely Estonian – and HVB’s €29 million 10-year FRN for the City of Tallinn being the only other bond. The spotlight therefore falls on the loan and project finance markets and the most notable deal in the year covered by Euromoney’s awards was Estonian Cell’s €108 million syndicated loan, which had HVB as lead arranger. By default, HVB Group takes the award.
The only primary deal with a link to Estonia primary equity during the past year was Suprema Securities‘ execution of the largest ever trade in the Baltic capital markets, with a €403 million placement of Hansabank stock – over a quarter of the free float. The block trade in March 2005 was part of the turbulent takeover of Hansabank by Swedbank – which was ultimately successful – and was sold by an undisclosed party.
Last year, Hansabank was the winner of the M&A house award. This year it was the target of the Baltics’ most dramatic M&A. The winner of the award is Citibank, which deftly advised Hansabank on the takeover that will shortly result in Hansabank being delisted – something of a blow to international investors, which have traditionally used it as a proxy for the region – after the 40.29% of Hansabank outstanding was bought for €1.72 billion by Swedbank.
