Updated April 7, 2008

   European Bank for Reconstruction and Development (EBRD) became the largest buyer of Globaltrans stocks within the recent IPO of the company in London – the bank purchased 2,5-3% company stocks. Globaltrans is the second Russian railway asset, after TransContainer, where EBRD invests in.

Experts consider the bank interest helped

the company to offer rather successfully at the crisis market.

   According to a source aware of Globaltrans IPO, EBRD got interested in the company within the road show.

The bank was interested in purchasing 5% of the company stocks that equals around 1/6 of all offered stocks – 29%

. Globaltrans matter was discussed within the last meeting of EBRD directors' board on April, 29. The press secretary of the Russian bank branch Richard Wallis confirmed the directors' board had been considering and approved the matter about the participation in Globaltrans equity capital, but he could not say what holding EBRD was ready to purchase explaining that its amount would be determined right after the official ending of the offering and after the trade beginning on May, 8.

However, a source aware of the IPO results says EBRD did not get 5%: the bank did not have preliminary agreements with Globaltrans and IPO managers; it had joined the offering ra ther late and participated under general conditions through the bid book. As a result EBRD succeeded to purchase no more than 2,5-3% stocks. However, the bank became the largest buyer of NCSP stocks (Novorossiysk Commercial Sea Port) as an expert says.

According to IPO results Globaltrans capitalization totaled $1,543 billion, so the bank spent no more than $50 million to purchase the holding.

   Globaltrans Investment Plc amalgamates the assets of N-trance Group: railway operator JSC Novaya perevozochnaya kompaniya (NPK) and rolling equipment owner JSC Sevtekhnotrance. The Cyprian Transportation Investment Holdings Limited owns 70% of Globaltrans; the former is controlled by N-trance owners pari passu – Konstantin Nikolaev, Nikita Mishin and Andrey Filatov. Envesta Investment owns another 30%, which belongs Globaltrans director general Sergey Maltsev (51%) and the chairman of directors' board Alexander Eliseev (49%). In 2007 Globaltrans earnings totaled $548,9 million, EBITDA – $157,4 million, net income – $78,5 million.

   Globaltrans is the second largest railway company in Russia.

It entered the western capital markets after JSC TransContainer (JSC Russian Railways subsidiary) that sold 15% stocks within the private placement at the end of the last year-beginning of the current year. EBRD has also participated in TransConta

iner private placement, but more successfully. The bank has bought almost two thirds of the offering out – 9,25% company stocks. According to the opinion of Bank of Moscow analyst Mikhail Lyamin, EBRD participation in Globaltrans IPO says about EBRD long-term interest to the industry.

Moreover, investments into the infrastructure are one of the core EBRD functions, but the bank never takes part in unprofitable projects, as Mr.

Lyamin says. EBRD appearance among the claimants for Globaltrans holding has no doubt become one of the reasons of the successful company offering on the background of the crisis market condition. Prospective buyers know EBRD is the long-term investor and its interest could become a positive sign for investors, as an expert concludes.

"It is the serious structure, but everything depends on the price EBRD has bided", says Troika Dialog analyst Kirill Kazanli.

He recollects NCSP IPO within which TransCreditBank has declared it would buy 5% company stocks out for top of a price range.

"This became determinant then for all investors", an analyst marks.