Vozrozhdenie Bank has got RUB 6.6 billion of state support under recapitalisation programme of the Deposit Insurance Agency

22 October 2015

Vozrozhdenie Bank has got five issues of sovereign bonds (OFZ) with aggregate face value of RUB 6.6 billion maturing from 2025 to 2034 under the subordinated loan agreement with the Deposit Insurance Agency. The interest rates on the instrument are equal to the relevant OFZ coupon rates plus 1%.

The bank has also concluded an agreement with the Agency on monitoring activity of the bank; its particular terms have been preliminarily approved by the extraordinary General Meeting of Shareholders of the bank.

“The terms of the participation in the recapitalisation programme are absolutely in line with our strategy of growth in the targeted client segments — mortgages and SME lending. Given the high share of the Tier-1 capital in the bank’s equity, raising subordinated loan on favourable terms will allow us to enhance the capital position and expand the business, intensifying provision of banking services to the key sectors across our geographic footprint”, noted Andrey Shalimov, Acting Chairman of the Management Board at Vozrozhdenie Bank.

The state support obtained via the recapitalisation programme proves the enduring financial position of the bank and its importance for the Russian economy as well as offers additional opportunities for the future business development.

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