Alfa Bank Plans Bond

Alfa Bank is planning a subordinated eurobond issue to support its capital adequacy ratio, essential to continue lending, a spokesman for the lender said Thursday.

With global equity markets largely closed for emerging market names, local lenders are left with fewer options to boost capital, which they must do to be able to lend. Subordinated loans are now the most popular tool.

The spokesman said Alfa Bank was not planning to use the same tool as state-owned peer VTB, which raised $1 billion in a perpetual bond last month, the first deal of its kind in Russia.

(Reuters)

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