CREDIT BANK OF MOSCOW’s equity up by RUB 1.5bln
31 May 2010 – CREDIT BANK OF MOSCOW’s equity was increased by RUB 1.5bln by means of a subordinated loan.
The Bank of Russia (letter No 52-03-16/7352Dsp dated 28.05.2010) acknowledged a 10 year loan (due 2020) raised by CREDIT BANK OF MOSCOW as a subordinated debt to be treated in full as additional capital. The loan was granted by Wellcreek Corporation, the main shareholder of "Rossium Concern", SLL. Rossium Concern is the sole shareholder of CREDIT BANK OF MOSCOW. This loan will augment the Bank’s equity and secure a high level of capital adequacy for its further development.
Upon inclusion of the subordinated loan in its additional capital, CREDIT BANK OF MOSCOW’s equity rose by 14% compared to 01 April 2010 and exceeded RUB 12bln.
It is worth reminding that 2009 saw a RUB 3bln capital injection by the shareholder bringing the Bank’s equity to RUB 10.6bln as at 1 January 2010.
"CREDIT BANK OF MOSCOW develops dynamically and pursues a strategy involving a substantial expansion of assets. Thus, a capital increase is a logical business development step which is to enhance the Bank’s financial strength and facilitate the successful implementation of our plans", - noted Alexander Nikolashin, Chairman of the Management Board of CREDIT BANK OF MOSCOW.