11 March 2013
Bank Vozrozhdenie got consent of the Bank of Russia to include the third tranche of subordinated deposit raised late February in the amount of Rub 1 bln to Tier-2 capital. The full amount of subordination signed up in July 2012 totaled Rub 3 bln under 9.25% p.a. for 8 years. Received funds will be included into Tier-2 capital in accordance with the Bank of Russia requirements and Basel standards.
“Russian banks considered subordinated instruments as one of the most attractive ways of swift capital enhancement amid upcoming changes in capital adequacy calculation requirements and expected implementation of Basel 3 standards. Timely raise of subordinated deposit makes us feel comfortable in anticipation of tougher requirements for including this instrument into Tier-2 capital. We’ve managed to improve our capital position and built a base for further business development in order to achieve our targets for 2013”, commented Andrey Shalimov, Deputy Chairman of Bank Vozrozhdenie Management Board.
According to the Bank of Russia Regulation №
As of March 1, 2013, Bank Vozrozhdenie capital adequacy ratio H1 came at 11.94%. Adding the last tranche of subordinated deposit to the indicator, calculation would increase it to 12.45%. In accordance with the Bank of Russia Instruction №