CREDIT BANK OF MOSCOW increased its capital by RUB 10 bln
End-December 2014 CREDIT BANK OF MOSCOW received the final conclusion from the Bank of Russia approving the inclusion of two subordinated loans in the total amount of RUB 10 bln into the Bank's Tier II capital in accordance with 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 III“)". As at 31 December 2014, the subordinated loans were included in the Bank's total capital.
The first subordinated loan in the amount of RUB 5 bln with the maturity of 10 years was provided by the Bank's principal shareholder LLC "Concern "ROSSIUM" using proceeds from the sale of a non-bank asset of the Bank's majority beneficial shareholder Roman I. Avdeev, namely, pharmaceutical company "Veropharm". The company was sold to the American pharmaceutical corporation Abbott in December 2014.
The second subordinated loan in the amount of RUB 5 bln with the maturity of 10.5 years was funded through the subordinated Eurobonds placement by CBOM Finance p.l.c. (SPV) at a nominal value of RUB 5 bln with the interest rate of 16.5% and a call option in 5.5 years. The Eurobonds were placed on 26 November, 2014, the arrangers included Otkritie Capital International Limited, BK "REGION", Sberbank CIB.