Moscow-based Rosinterbank has increased its capital by Rub 500 mln after taking out a subordinated loan. As the bank reported, as of October 24, 2015 the bank's equity was slightly under Rub 8.60 bln.
Hermes-Organica LLC, a company affiliated with the bank's majority shareholder Georgy Gvelesiani, provided the funds for 30 years. The lender specified that the terms of the subordinated loan fully comply with the Bank of Russia's requirements, allowing the bank to reflect it among sources of the lending institution's primary and additional capital.
For the record, as of October 1, 2015 in terms of some capital adequacy ratios the bank was close to the regulatory lows. Specifically, N1.1 (Core Capital Adequacy Ratio) equaled 6.07%, N1.2 (Main Capital Adequacy Ratio) came to 6.43%, N1.0 (Total Capital Adequacy Ratio) was equal to 10.73% against the statutory thresholds of 5%, 6% and 10%, respectively.
"The funds drawn will be included in the calculation of the bank's equity (capital), making it possible to boost the capital adequacy ratio," the bank emphasized.
The bank's capital was increased in accordance with Rosinterbank's approved development strategy, according to which annual capital injections equal Rub 2 bln, the bank specified. To remind, the bank took out a previous subordinated loan (also of Rub 500 mln) from its majority shareholder in late August 2015.
"The funds will be earmarked for the bank's further expansion," the bank said in a press release in October.
News broke earlier in the month that Rosinterbank imposed restrictions on funds to be put in deposit accounts that were opened from December 17, 2014 until May 11, 2015 as their interest rates are high for the bank.
