IFLR 1000
The Guide to the World's Leading Financial Law Firms

After a lingering hangover from the crisis, banking practitioners are now saying far more optimistic things about the market. "The insolvency work had tapered off by spring 2010 and from the summer on we saw a lot of new money deals. These were mainly for export credit agencies to begin with, but multinationals got involved too," comments one partner, while another hints at fresh financing mandates hitting the market: "I am optimistic as long as it continues like this. Summer looks to be very busy." Another banking partner agrees with the starting point of the upswing: "Since April it has been better, with activity in the market again."

"It has been almost 100% busier and we are looking for more hands in the department here," says a partner, while another positive has been the broadening of the market, with more borrowers able to get the capital they need: "The thing is, if you weren't blue chip 12 months ago it was very hard to lend. Now, you can."

However, it would be wrong to characterise the garden as completely rosy, as there are still issues. The main thing is that the structure of deals has completely changed, with lenders acutely more aware of risk after taking hit after hit during the crisis.

"In a sense, it is not a stable period. People want refinancing to get better terms," comments one lawyer, while another adds: "Credit conditions were not normal here. They still aren't normal really."

Banks are looking to eliminate risk as much as possible, while still covering themselves. This includes changing the way they are doing their lending. "Banks are now coming together more on a club basis, forming pre-baked syndicates," comments one partner. In all, it has made for a climate where deals are up on high wires, capable of being toppled without too much difficulty. "Structures are very delicate," says a partner.

There is also an indication that the market has become noticeably more stratified, as one partner puts it: "I don't want to sound too high and mighty but the work that has been around has come to the top, and we have done a good proportion of the transactions that have been done." This could have a knock-on effect on some of the more mid-market firms, as their client base is eaten into.

Lastly, the privatisation programme is something that is on the backburner, as lawyers wait for the big break which they hope will bring a slew of acquisition finance mandates. "In terms of privatisation, banks are looking at financing but with no success so far. This is a big trend though, and will happen in the near future," says one finance practitioner.

It is fair to say that Allen & Overy's Moscow office has had something of a difficult year, with some noting that the firm hasn't been such a familiar presence as it had been before on deals, as well as whispers of problems with staffing as lawyers continue to come and go, a situation that can create an unsettled environment, being prevalent.

"It is a strong firm but it is in a difficult transitional period and has lost a lot of important people. We still see them as competition though," concedes a rival partner, and the firm has hung on to its tier one placing by dint of its strong global reputation in banking still being reflected in Russia and as its deal flow remains strong.

The most sizeable deals came from advising VTB Capital. Stephen Matthews acted on one deal regarding a sovereign loan worth $2 billion to Ukraine. Matthews also advised VTB on acquisition financings including a $3.4 billion raising to act as finance for the acquisition of the majority share in Uralkalui. The other aspect of the financing was on structured secured senior acquisition finance facilities for specific use in gaining shares in OJSC Silvinit.

A deal reflecting the trend of how banks are coming together more to lend, saw a team advising a large consortium of international and Russian banks, including Barclays Capital, BNP Paribas, Bank of Moscow, The Bank of Tokyo Mitsubishi, Citibank, Commerzbank, ING, Nordea Bank, RBS, Sberbank, Société Générale, Sumitomo Mitsui and UniCredit on a syndicated pre-export facility extended to the sixth-largest Russian oil company Tatneft. Divided into three tranches, with rates on an ascending lockstep of Libor plus 3.1%, 4% and 5%, the deal overall was worth $2 billion.

"CC is one of the names we see most, we are always opposite them. They have a large team out there," comments a rival partner on just how active the magic circle firm has been over the past 12 months. Having come through a protracted global reorganisation, the firm has emerged and seemingly put itself on a steady footing in Russia, evidenced by retaining its tier one placing this year.

Leading lawyer Victoria Bortkevicha has been extremely active, appearing on almost all of the firm's standout deals, this included arguably the firm's number one banking deal this year acting for Sberbank, the largest bank in Russia, on a refinancing of its external debt through receiving a $2 billion facility extended by a syndicate of international banks including, but not exclusively, Barclays Capital, BNP Paribas and ING. The deal was extremely high profile and represented the largest ever syndicated loan to a Russian financial institution as well as the largest loan of that type to any bank in the region during 2010. The deal finally closed successfully in December 2010.

Bortkevicha also led, with assistance from Clifford Chance's London office, on a deal for VTB Capital. In this the bank provided a facility to The Seventh Continent, a leading Russian food retailer. The deal completed in October 2010 for a value of approximately $650 million.

Leading lawyer Logan Wright actually heads up the banking and finance practice in Moscow, and he has been involved at the sharp end of deals too. Wright headed up a team advising RBS, Deutsche Bank and ING on the provision of a pre-export finance credit facility for Evraz, a leading steel production and mining company that has been very active in securing capital for itself this year. This deal, which was oversubscribed, closed out just before Christmas 2010 for an overall value of $950 million.

Herbert Smith makes the jump to tier one this year after market opinion overwhelmingly indicated that its growth strategy has definitely paid off, at least in Russia.

"Herbert Smith I have a lot of respect for. A few years ago they said 'we want a bigger share' and they went out and hired Ed Baring and Alex Currie and together they've pushed the firm on," says one rival partner, while another agrees: "Herbert Smith have invested heavily and could be looking up the tiers."

The consensus is far reaching too: "Herbert Smith is definitely pushing its way up. I would expect to see them in tier one," comments a partner, while another competitor hints at their active nature as the reason for its elevation: "Herbert Smith should go up, we have seen them on a lot of deals over the past year."

Clients weigh in with their praise too, keen on the expertise but also the value the firm seemingly provides: "Generally, they are one of the best firms for value, in my opinion. Also, their approach to quotes is commonsensical rather than formalistic."

Another client speaks to the legal capability of the team specifically: "The team has a very high level of technical ability. One of the transactions we did with them involved a relatively complex contracting and security structure."

Even by taking into account this prevailing opinion, the deal flow for the team must stand up and it does not disappoint, with a number of mandates dealing with the oil sector.

One substancial deal for the firm saw a team, led by leading lawyer Edward Baring, advising the mandated lead arrangers BNP Paribas and Standard Chartered on a significant facility to be provided to entities from BP Angola, a facility secured against the cash flow from oil exports. The deal is notable for the difficult surroundings it took place in, against the backdrop of volatility in Angola, the general low ebb of the market and BP's environmental issues in the Gulf of Mexico. The team managed to complete the deal in July 2010 for a figure of $3 billion and Herbert Smith is now also on the panel of firms for BNP Paribas.

Another multi-billion dollar deal saw a team, headed up by partner Artjom Buligin, advising agent WestLB, as well as other assorted syndicate banks including BNP Paribas, Citi, Credit Agricole, RBS, Deutsche Bank and Société Générale, on a dual-tranche facility made creative by the fact that it was unsecured, a rarity in a volatile market. The recipient of this was TNK-BP, a privately-owned oil company, and the transaction went through in October 2010 for a value of $2 billion.

Linklaters is a firm very much at the forefront of the market, grudgingly admired by peers and feted by its clients in almost every area. In terms of market opinion, if they were pushed to select a market leader, Linklaters would appear to be definitely amongst the favourites.

"In general they give us good advice and offer solutions. They bring your attention to important details, as well as being very quick and very professional," enthuses one client, while another adds: "Very good at explaining any solutions to problems and coming up with very clear suggestions without using legal jargon. We always get good clear responses."

Clients, always looking for a deal, are keen on the fees Linklaters offer: "When we pay Linklaters, we save money! It's very reasonable." Another is far more succinct in his opinion: "Linklaters is the best."

Rival partners are keen on the firm's team too, especially their fully prepared, no fuss approach: "Linklaters are incredibly good. They make their point, not aggressively though, and they back it up. So, you end up walking out and thinking 'yeah, that's good'," concedes a competitor, while another adds: "Links are doing far more big deals and can handle more of those types of deals too."

Practice head Michael Bott is by no means hands-off, getting involved on all the major deals done by the firm over the past 12 months. He led a team that advised a group of banks, namely, BNP Paribas, Commerzbank, HSBC, ING, Natixis, RBS, Société Générale and UniCredit in regard to the prevision of a pre-export facility for Mechel, a leading Russian mining and metallurgy company. Entailing an award-winningly complex borrowing and security structure, the deal closed out for a value of $2 billion.

In another highlight deal Bott also advised BNP Paribas, alongside Citi and Credit Agricole on a deal with an astronomical flavour. The banks were providing financing for Gazprom to be used to buy space satellites from Thales, a French satellite manufacturer. Representing the first space satellite financing in Russia, the deal was guaranteed in part by the French government's Export Credit Agency COFACE, and finalised for a value of €467 million.

Despite peers noting that the firm has not been all that visible over the past year, White & Case continue to display through its deal flow a solid year's work, which is enough to keep them in a tier two placing here.

The practice is headed up by the respected Irina Nesvetova, described as "very, very good at what she does" by a competitor and she has had a hand in some way on all the team's standout deals this year.

The latter months of 2010 actually provided a number of good mandates for White & Case. In one, Carter Brod and Irina Nesvetova advised Gazprombank with regard to a $900 million loan facility provided by a bank syndicate including Barclays, BNP Paribas, Citigroup and JPMorgan.

A similar deal involved Nesvetova leading a team working on the other side, advising a syndicate, comprised of Crédit Agricole, Natixis, Société Générale and UniCredit on a $500 million financing deal for ENRC, a natural resources group.

The firm did also made a positive recruitment move this year, with Thomas McDonald, an experienced partner previously based at White & Case in both Bucharest and Paris, joining the Moscow team effective February 2011.

Chadbourne & Parke's banking team has had a tumultuous couple of years, with important partners departing and some remarking that it was a practice on the decline. The firm would appear to have redressed that this year, hiring Simon Morgan from White & Case in September 2010 after taking international partner Ivan Kozhemiakov from Simmons & Simmons in July of the same year.

The team's workflow still remains fairly healthy, with a number of deals that required tinkering with existing mandates. On one deal London partners Konstantin Osipov and Alper Deniz advised Nomos Bank on the granting of sub-participation in a multi-million dollar facility extended to a Russian corporate borrower; a deal that completed in February 2011 for $260 million.

Another good deal once more involved Osipov, as he advised Ilim Group as amendments were made to a pre-export financing provided by Societé General, a deal worth $200 million that closed in 2010.

Cleary Gottlieb Steen & Hamilton is widely acknowledged globally as a top firm for capital markets work, but its banking practice in Russia is relatively active. "Cleary make an appearance here as they get steady work thrown off from their capital markets franchise. They act for the Russian government too," comments a partner.

Led by Scott Senecal in Russia, with backing from the London office, the firm's biggest deal over the last twelve months came as Senecal advised Tatneft as the borrower of a pre-export financing, opposite Unicredit as facility agent and WestLB as the documentation agent. Completing in June 2010, the deal was worth $2 billion.

"CMS do a lot of real estate financing, but there isn't a lot of that about," comments one partner, referencing its real estate strength. Despite this remark, the firm does report a busy year, with a number of good deals done and pending.

Arguably the best of these deals was when department head and partner Karen Young led a team advising Aareal Bank as it provided secured financing on a sale by Horus International of five office buildings to Lenmar Capital. The total overall value came to $808 million, and it was completed in November 2010.

CMS also made a good hire this year, taking partner Konstantin Baranov from Allen & Overy. He joined in November 2010.

Gide Loyrette Nouel moved up a tier last year on the back of the market recognising that it is becoming an increasingly visible presence, and the team has again reported a highly active year of sizeable deals.

The team is led by Grigory Marinichev, and augmented its ranks by taking Alexander Dolgov, a senior associate at Allen & Overy, and making him up to partner in October 2010.

Clients are enthusiastic about the team and its attitude: "They found an interesting solution for every problem. They are sufficiently creative. They are not flesh eating lawyers they tell you when to give in and when to stay firm," says one finance client.

Among the firm's standout mandates were a pair of deals connected to the metals market. In one high-profile deal a team led by Marinichev advising Mechel with regard to pre-export facilities worth $1.9 billion which came from a syndicate including ING and RBS and which closed in August 2010.

In a similar deal the firm acted for Natixis as it extended a facility to Russian Copper. This transaction was worth $200 million and completely in early January 2011.

Hogan Lovells holds a reputation for being good on trade and other export finance work, although the practice has shown a more diverse spread of mandates than that this year. Lovells also made up Alexander Rymko to partner, and he represents the 'boots on the ground' while, like other firms, the London office provides backup.

Rymko, with able assistance from Colin Craik in London and Ken Breken in Amsterdam, advised on the Moscow office's highlight deal this year, acting for X5 Retail Group, the borrower and largest retail chain in the country, on a dual currency facility that was part of a refinancing of an outstanding $1.1 billion facility. The deal completed satisfactorily in September 2010 for around $800 million, the other $300 million having been paid down before.

Alrud is a highly notable name among the local firms in Russia, and has handled a lot of restructuring work over the past couple of years.

The team has much work still under confidentiality but a good deal that shows the level of the firm came with partner and department head Alexander Zharskiy advising OTP Bank Nyrt (Hungary) on a number of facilities that required restructuring. All in all the deals came to a cumulative value of $150 million and closed out in September 2010.

Globally Norton Rose has been embarking on a number of mergers and agreements to expand, including in South Africa and Canada while also eyeing the US. This activity has not really impacted on the banking practice here as it retains its tier placing, with the market reflecting that the firm merits it.

The firm's work remains cloaked under confidentiality, but it has been advising big international names and has also brought in a respected new partner, Alexander Tsakoev, from Herbert Smith.

Salans has a certain reputation for working with development agencies such as the European Bank for Reconstruction and Development (EBRD) and the Eurasian Development Bank (EDB), and under department head Tim Stubbs has also branched out into other areas this year.

For example, the team advised a confidential Russian bank with regard to the equity financing of Inter RAO UES so that the company could acquire shares in OGK-1, a large electricity company. The deal came to a value of approximately $735 million when it closed in June 2010.

Stubbs also led on a deal with an oriental flavour, advising the confidential borrower of an acquisition finance facility worth over RMB 695.5 ($101 million), another deal that closed in summer 2010, in July.

Goltsblat is an up-and-coming firm, which relocated partner Simon Allan from London to head up its practice in February 2011.

The firm quickly established itself on some good deals too, including advising Mars LLC on a syndicated facility arranged by the Irish offshoot of Rabobank, a deal on which managing partner Andrey Goltsblat was involved and which closed for $213 million in November 2010.

Peterka has added to its banking team this year, making up David Simek to partner and making him head of the department, effective May 2010.

Simek was among the partners who acted on a big deal for the firm, joining Ondrej Peterka, Petr Riha and Jan Liska in advising UniCredit Bank, in connection with a loan and pledge for financial export contracts between Czech exporters and Russian importers. Specifically, this is the construction of two factories in Russia and the supply of mining equipment. Work is still continuing on the deal, which is expected to reach a value of approximately $57million.