Credit Bank Moscow to up charter capital 17.6%
MOSCOW. April 20 (Interfax) - The board of Credit Bank Moscow on April 19 voted to increase charter capital 17.65%, the bank said in a press release.
Charter capital will increase from 1.9 billion rubles to 12.68 billion rubles through an additional issue of common shares with par value of 1 ruble.
The shares will be issued through closed subscription for the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC), the investment arm of the World Bank, at 950.84 million shares each.
The share placement price will be determined by the bank's supervisory board following state registration of the issue.
The main beneficiary of Credit Bank of Moscow, Roman Avdeev, said in December that the bank was preparing for an IPO in the next three to five years. Avdeev said 20% to 25% of shares might be offered in the IPO.
Avdeev also said that 20% of the bank would be sold to an investor prior to the IPO. The EBRD and IFC were named as potential investors.
The IFC said in March that it planned to invest 2.9 billion (around $100 million) in Credit Bank of Moscow. This money will expand financing access, especially for mid-sized businesses, and increased capital ahead of regional expansion and the IPO in the mid-term.
Credit bank of Moscow needs to accumulate capital by $100 million to $200 million annually amid its existing rate of growth, Avdeev said. Sources for increasing capital include shareholder funds, subordinate loans and capitalization raising funds, such as the fund set up by the IFC. The only current shareholder of Credit Bank of Moscow is LLC Rossium Concern, of which the end beneficiary is its general director Avdeev.
Credit Bank of Moscow was ranked number 21 by asset value in the Interfax-100 review of Russia's banks in 2011.