MOSCOW, July 23 (Reuters) - The European Bank for Reconstruction and Devel
opment (EBRD) and International Finance Corporation (IFC) are buying a 15 percent stake in Credit Bank of Moscow (CBM) to help towards a flotation of the mid-sized lender within five years, the EBRD said on Monday.
The EBRD, which owns stakes in 13 other Russian banks, and IFC will each buy 7.5 percent in newly issued shares for 2.9 billion roubles ($90.5 million) with the cash being used exclusively for CBM's growth, the EBRD said in a statement.
CBM, owned by Russian entrepreneur Roman Avdeev, had a capital adequacy ratio under local rules of 11.06 percent as of July 1, close to the 10 percent level needed to keep a banking licence. CBM is ranked among Russia's top 25 lenders by assets.
The EBRD said that CBM's capital increase will 'provide important institutional support for this client's plans to launch an initial public offering during the course of the next five years, market conditions permitting'.
Russia's banking scene is dominated by state-controlled lenders led by Sberbank and VTB, and only a few privately owned banks such as Nomos, Vozrozhdenie and Bank St Petersburg are listed.
The EBRD, set up in 1991 to manage the transition of former communist countries to market economies, invests in banks among other businesses. Depending on the business, the EBRD may later sell holdings at a premium.
($1 = 32.0325 Russian roubles)
(Reporting by Katya Golubkova; Editing by Louise Ireland) Keywords: RUSSIA CBM/EBRD
COPYRIGHT Copyright Thomson Reuters 2012. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Datafeed and UK data supplied by NETbuilder and Interactive Data.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk!
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.