21 Aug 2009 10:08

VTB24 to bolster capital nearly 50% with share issue

MOSCOW. Aug 21 (Interfax) - VTB24 , which is the retail banking arm of the VTB bank, will increase its share capital by 16.4 billion rubles by issuing new shares in favor of the parent bank.

VTB24 said in materials that it would raise a total of 24 billion rubles with the share issue, which was approved at an EGM on August 20.

The bank's share capital, which was 34.2 billion rubles as of July 1, will go up 48% as a result to 50.6 billion rubles, and its equity will rise 32.5% to 98.2 billion rubles.

VTB will subscribe to 16,433,159,000 new ordinary shares, par value 1,000 rubles each, at a placement price of 1,465 rubles each.

It will pay in both cash and assets.

VTB24 was Russia's 6th largest bank by assets, according to the Interfax-100 ranking at the end of the first half of 2009. VTB was the second biggest.