Support The Moscow Times!

Renaissance Credit Raises $100M

Renaissance Credit, a midsized bank focused on consumer lending, raised $100 million via a subordinated eurobond issue maturing in 5 1/2 years, the bank said Tuesday.

The bank, which issued the bonds at a yield of 13.5 percent, plans to use proceeds to support its capital adequacy, a financial cushion to absorb possible losses.

Russia is in the midst of a retail lending boom, with banks targeting consumers amid weak credit demand from corporate borrowers. Rapid growth requires banks to increase their capital ratios to meet a possible spike in unperforming loans.

Worried that retail lending growth running at a rate of more than 30 percent may conceal bad loans, the Central Bank plans to demand tougher provisions to guard against default in the lowest-risk category of retail loans. (Reuters)

Read more

We need your help now more than ever.

Independent media outlets and journalists in Russia are being increasingly targeted with “foreign agent” and “undesirable” labels, threatening the existence of the free press day by day.

Your donation to The Moscow Times directly supports the last independent English-language news source within Russia.