Medvedev signs order on converting NWF subordinated loan into Gazprombank prefs
MOSCOW. Dec 2 (Interfax) - Russian Prime Minister Dmitry Medvedev signed an order last Thursday to convert a 39.95 billion ruble subordinated loan issued to Gazprombank from the National Welfare Fund (NWF) into preferred shares, the government's press service said.
A draft of the order was discovered in August, and the parameters of Gazprombank's additional issue in favor of the government are already known: the bank will place 39.959 million shares at 1,000 rubles apiece.
In May 2014, the authorities allowed banks to convert debt owed to Vnesheconombank (VEB) into preferred shares, which will allow them to satisfy the growing demand for loans from Russian companies that are unable to borrow on foreign markets because of Western sanctions. This option has already been used by state-owned banks VTB and Russian Agricultural Bank (RusAg) . The government owns indirect stake in Gazprombank through Gazprom and VEB.