CREDIT BANK OF MOSCOW completes additional share issue


On September 25th, 2013, the Bank of Russia registered CREDIT BANK OF MOSCOW’s Additional Share Issue Closing Report.

The issue comprised 1.8 billion ordinary shares of RUB 1 nominal value and was placed through closed subscription. The Bank’s share capital was increased by 14.1% to RUB 14.5 billion. The total investments exceeded RUB 7.5 billion.

The additional share issue allowed the Bank to strengthen its capital structure in compliance with the Bank of Russia’s new Basel III based capital adequacy requirements. The current estimated capital adequacy ratio based on new requirements of the Bank of Russia under Regulation No. 395-P dated 28.12.2012 «On the Method of Calculating the Amount and Assessing the Adequacy of the Capital of Credit Institutions („Basel 3“)» (N1.0) stands at 13.9%. At the same time, according to the old method of calculation as per Bank of Russia’s Regulation No. 215-P «On the Method of Calculation of the Net Worth Capital of Credit Organisations», the estimated N1 ratio is 13.0%. Ratios values differ as under the old method of calculation there are restrictions which limit the inclusion of subordinated loans in additional capital up to 50% of a bank’s core capital.

As reported previously, the issue was purchased by the Bank’s current beneficial owners. The main beneficial owner, Mr. Roman I. Avdeev, acquired new shares by way of conversion of subordinated loans granted by him to the Bank earlier.

This additional share issue is a part of a series of interrelated transactions following the acquisition by the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) of an aggregate 15% share in the Bank’s capital in August 2012. As a result of completion of a series of transactions, which is planned by the end of 2013, ROSSIUM Concern, LLC will keep 85% of shares of the Bank, while stakes of the minority shareholders will be as follows: EBRD — 7.5%, IFC — 2.9% and RBOF Holding Company I, Ltd. — 4.6%.