Gazprombank converts subordinated debt into shares
Gazprombank completed on Wednesday the conversion of its subordinated debt to shareholders and Vnesheconombank (VEB) into common stock, the lender said in a statement.
The banking arm of natural gas monopoly Gazprom placed 4.53m additional shares with par value of RUB 1,000 apiece (approx. USD 30.55). The bank's charter capital increased 22.7% to RUB 24.53bn (approx. USD 749.47m) after the offering. The shares were sold at RUB 20,000 (approx. USD 611,060) per unit. VEB purchased 2.5m shares for RUB 50bn (approx. USD 1.53bn) thus acquiring a 10.2% interest in Gazprombank.
The rest of the shares were purchased by Gazprom and its affiliates. Specifically, Gazprom purchased 375,000 shares for RUB 7.5bn (approx. USD 229.15m).
VEB extended about a RUB 90bn (approx. USD 2.75bn) loan to Gazprombank and shareholders disbursed RUB 40bn (approx. USD 1.22bn) after the financial crisis.
Source: http://www.rbcnews.com/
