Moscow. January 11. Supervisory Board VTB has made the decision on increase of the authorized capital of the Bank of Moscow.
The Bank of Moscow will place on the closed subscription 73 253 million 833 thousand additional ordinary shares with a nominal value of 100 rubles. The placement price will amount to 587 roubles per share, said in a statement VTB.
Thus, after the additional issue the Bank of Moscow can increase its share capital by 27% (now it is 27,174 billion) and increase its own funds to 42,99 billion.
“The need to increase the capital of Bank of Moscow due to the need to fulfill the regulatory capital requirements. As a result of recapitalization, the capital adequacy ratio will amount to 11.37 per cent”, – reported in a press-service VTB, did not specify from which funds the Bank intends to capitalize the subsidiary structure.
The adequacy ratio of the Bank of Moscow under RAS for the 1st of December 2015 was 10.96% at the minimum permissible level of 10%.
The share of VTB in the Bank’s authorized capital after the additional issue will amount to 100%, the report said. As of the end of the third quarter VTB owned 96,88% of Bank of Moscow shares, to 2.99% from the company Plenium Invest, which for many years did not disclose information about its beneficiaries. At the time, the company linked with the former head of Bank of Moscow Andrey Borodin, though he denied his involvement in the Plenium Invest. In November of 2015 VTB has begun the procedure of compulsory redemption of Bank of Moscow shares from the minority shareholders. The price at which it is squeeze out, almost identical to the offering price of the new issue, 589,89 ruble per share. Officially, the completion of the procedure of the redemption, which will cost VTB 5 billion roubles, have not been reported.
The latest recapitalization of the Bank of Moscow took place in late 2011 – early 2012, when the Bank placed in favour of VTB group, the additional shares to 102 billion roubles. The placement price amounted to 1111,77 rubles per one security.
After joining VTB capital in Bank of Moscow in 2011 revealed the financial problems of the Bank associated with large-scale lending companies, the”pacifiers” and entities affiliated with its former management. In the end, the Central Bank and Agency on insurance of contributions has made the decision on sanitation of Bank of Moscow with a 10-year loan of 295 billion rubles at a discounted rate of 0.51% per annum.
In may 2016 VTB group plans to reorganise the Bank of Moscow, which resulted in the bulk of its assets and liabilities will be allocated and simultaneously attached to the VTB Bank. The Bank of Moscow will be saved as a legal entity, whose main task will be the implementation of the financial recovery plan.