Vneshtorgbank intends to acquire some $2bn at the IPO, as announced by Andrey Kostin, head of the board of directors, in an interview to the Bloomberg Agency, a latent leader in terms of funds attracted. So far, it is AFK Sistema with $1.56bn.
      
       IPO is scheduled for 2006 but Mr Kostin will soon meet with Citigroup, one of the two underwriters (together Deutsche Bank) to negotiate the offering of 10% to 20% of the bank’s shares.
      
       The forthcoming event would allow the bank to expand their network of subsidiaries and successfully compete with the foreign banks. "Banking sector in Central and Eastern Russia is missing altogether, absorbed and controlled by the European financial institutions ", thinks Mr Kostin. By 2009, the bank could extend its share in the deposit market from 2.6% to 10%.
      
       Vneshtorgbank secured its chances with a purchase of GUTA-bank. From August 1, 2005, the daughter bank focused on retail services will operate under the brand "Vneshtorgbank 24", headed by the former finance minister Mikhail Zadornov.
      
       "Mr Kostin detected the key success factor to go for IPO – strengthening its positions in retail banking", believe the ATON analysts. It could even vie for clients with Sberbank. So it is going to be a new blue chip.
      
       The only disadvantage lies with the bank’s partners. Many of them come from the defense sector, which could raise national security issues stripping the bank of the government’s go-ahead.
      
       Mr Kostin does not want to invite underwriters for co-investment. Today, Vneshtorgbank is the second largest credit organization in Russia and the head of the board of directors wants to keep it independent. Its assets reached $19.5bn, capitalization – $3bn, credit portfolio runs into $11bn, while net profits amount to $440m. Its authorized capital is 42.1bn roubles ($1.5bn). The biggest shareholder (99.9%) is the RF government.