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Weekly Lists
September 7, 2018 www.intellinews.com I Page 27
bne:Banker Russia's VTB Bank
sheds its US business
Five prospective bidders line up for Banca Romaneasca
Russia's second-largest bank state-controlled VTB announced it is selling its New York-based VTB Capital to the management, Reu- ters reported on September 3. VTB will have no direct presence in the US following the deal.
The business, now called Xtellus Capital Partners, will still provide brokerage services to VTB, so that the bank can continue offering equity and fixed income products in the US to its clients.
The sale was motivated primarily to unfavourable geopolitical con- ditions. “Given the current geopolitical situation such a change ... is the most appropriate way to continue servicing our Russian and global clients,” VTB said.
Five prospective bidders are interested in the Romanian subsidiary of the National Bank of Greece, Banca Romaneasca, Ziarul Financiar daily reported. NBG expects non-binding bids by September 24.
Romania’s central bank forbade the takeover of Banca Romaneasca by the local subsidiary of Hungary's OTP bank in mid-March. It is uncertain whether the central bank will endorse any of the current suitors — except for state-owned Romanian bank EximBank and Intesa Sanpaolo — after it questioned the financial strength of OTP.
Among the potential bidders are small local banks willing to improve their market shares, the daily indicated, thus confirming previous rumours.
The other prospective bidders are JC Flowers investment fund, Patria Bank, Intesa Sanpaolo and the Vardinogiannis family of Greek investors.
The sustained pressure on the Turkish lira (TRY) and the deadlock between Ankara and Washington over their rift may prompt over- seas banks to reassess what were previously near-automatic rollo- vers of syndicated loans to Turkish lenders.
That was the view of Paul McNamara, a London-based fund man- ager at GAM UK, as reported by Bloomberg’s Odd Lots podcast on September 4.
“What’s really going to change now is when it’s embarrassing for a bank CEO in Europe to explain how much exposure they have to Turkey,” he said.
Turkish banks are rushing to meet $6bn of financing deadlines amid the country’s worst economic crisis in years.
Overseas banks
‘may reassess what were near-automatic rollovers of syndicated loans to Turkish lenders’