Promsvyazbank, one of Russia's largest non-state banks, has strengthened its balance sheet with a $400 million bond issue this week, an alternative to a share sale it canceled after baulking at the valuation proposed by investors.
Chief financial officer Alexandra Volchenko said Thursday she expected the bank's capital adequacy ratio — a key measure of a bank's ability to withstand shocks — to exceed 11 percent after the bond issue, based on a local definition of the ratio.
Promsvyazbank, the country's No. 10 lender by assets and controlled by brothers Alexei and Dmitry Ananyev, placed a seven-year subordinated eurobond issue worth $400 million with a yield of 10.20 percent on Tuesday.
The deal came after Promsvyazbank postponed an initial public offering earlier this month.
(Reuters)
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