8 Aug 2014 11:36

Sberbank's capital adequacy to grow more than 1% after conversion of CBR subordinated loan

MOSCOW. Aug 8 (Interfax) - Sberbank's capital adequacy will grow by more than a percentage point after the conversion of a subordinated loan from the Russian Central Bank into a perpetual loan, the bank's press service told Interfax.

"The adequacy level of total capital [N1.0] will grow just over 1 percentage point, and this should happen over the coming months," the press service said.

As of July 1, Sberbank's N1 ratio totaled 12.29%.

Sberbank said yesterday that it had determined the form to be used to convert a subordinated loan raised from the Russian Central Bank during the 2009 crisis, and had informed the regulator of this.

The bank intends to convert debt owed to Central Bank into unsecured subordinated loans with maturity of up to 50 years or with maturity no less than 50 years with the possibility to prolong no more than once in the 50 years without the creditor's approval at 6.5% p.a., which could be reviewed after December 31, 2019.