Bank of Moscow could issue 100 bln rubles in new shares by end 2011
MOSCOW. Sept 6 (Interfax) - Bank of Moscow plans to issue 100 billion rubles in new shares in favor of VTB by the end of 2011, and not, as thought, by the end of next year.
"I think by the end of the year, unless there are any changes. There's no change of plan so far," Bank of Moscow's deputy CEO, Alexander Yastrib, told reporters.
The VTB Group had planned to carry the share issue out before the end of 2012. Asked why the share issue might be brought forward, Yastrib said Bank of Moscow had ambitious plans to bolster its loan portfolio.
"We have very aggressive development plans. And the shareholder [VTB] is looking at all aspects of Bank of Moscow with a view to improving its lending opportunities," he said.
Yastrib also said the bank's strategy to 2013 would be approved in October.
"I think in October. We'll also have to make all the financial projections and start business planning in the framework of the VTB group," he said.
The Central Bank and Deposit Insurance Agency on June 30 approved a financial recovery plan for Bank of Moscow which involves the DIA releasing 295 billion rubles in bailout funds. The plan was for those funds to be provided to Bank of Moscow after VTB has consolidated 75% of the bank's shares by buying other shareholders out. Bank of Moscow was due after that to issue 100 billion rubles in new shares in favor of VTB.
VTB bought 46.48% of Bank of Moscow outright and a blocking stake in Capital Insurance Co, which owns 17% of the bank, for 103 billion rubles in February 2011.