CREDIT BANK OF MOSCOW announces decision to increase the share capital


On 29 July 2013, the extraordinary general shareholders’ meeting of CREDIT BANK OF MOSCOW resolved to increase the Bank’s share capital by placing additional ordinary registered uncertified shares in the amount of 1,789,928,783 shares with a par value of 1 rouble each.

Shares of the additional issue will be allotted by closed subscription among current beneficiaries of the Bank. Purchase of new shares will be partly sourced from conversion of the existing subordinated loans raised by the Bank from its main beneficial owner R.I. Avdeev. This transaction will ensure strengthening of the Bank’s capital structure in response to new requirements of the Central Bank of the Russian Federation to capital adequacy as per Basel 3.

The additional share issue is a part of a transaction involving acquisition by the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) of the aggregate share of 15% in the Bank’s capital in August 2012, followed by the assignment by IFC in December 2012 of part of its shares in favor of the Russian Bank Capitalization Fund (same group of companies with IFC). Current shareholders’ structure of the Bank is represented by «ROSSIUM Concern», LLC (85% of shares), beneficially owned by Roman Ivanovich Avdeev, EBRD (7.5%), IFC (2.9%) and RBOF Holding Company I, Ltd. (4.6%), 100% owned by the Russian Bank Capitalization Fund.

As a result of a number of related transactions (including additional share issue of the Bank), planned for the second half of 2013 and based on the agreements of the previous year, no changes in the current shareholders’ stakes are expected.