Bank Vozrozhdenie raised the second tranche of subordination

29 December 2012

Bank Vozrozhdenie raised the second tranche of subordinated loan in the amount of Rub 1 billion under 8-year agreement concluded in July 2012. The loan bears an interest rate of 9.25%. Funds raised will be included into Tier-2 capital in accordance with the Bank of Russia requirements and Basel standards.

“Receipt of the second tranche will support the comfortable capital adequacy level and ensure the base for future loan book growth. Q4 2012 saw some rebound in business activity and credit demand. The bank is eager to meet the needs of its customers to finance their current activity and contribute to their business development. Tier-2 capital growth will ensure our confidence amid expected regulatory changes”, commented Andrey Shalimov, deputy chairman of the management board.

In the course of the last two years the Bank of Russia gradually toughened capital adequacy requirements, in particular regarding operational risk level as well as non-core and high-risk assets calculation. Supported by the first tranche raised in July the bank strengthened its capital position and maintained presence on the key markets while the second tranche will enhance the bank’s further business expansion.

Changes in composition of Bank Vozrozhdenie Management Board
Assets of Bank Vozrozhdenie added up 14% in 2012