The Central Bank of Russia has approved a deal between the KAPITAL investment group and PROMSVYAZBANK (Moscow). KAPITAL is to provide a $30-million subordinated loan to PROMSVYAZBANK for a 5.5-year term. The Russian bank is to use the funds to strengthen its capital base. This will enable the bank to increase assets at a high rate by increasing personal credits and expanding corporate business. The overall subordinated debt will thus exceed R4.0 billion. The loan has been registered by the Bank of Russia as PROMSVYAZBANK’s tier-2 capital.
Source: PROMSVYAZBANK PRESS SERVICE, June 20, 2006
