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June 30, 2017 www.intellinews.com I Page 24
bne:Banker Russia’s
Promsvyazbank reportedly mulls $0.5bn perpetual Eurobonds
Societe Generale sells minority stake in Georgia’s TBC Bank
One of Russia’s largest private lenders Promsvyazbank is consider- ing an issue of $500mn worth of perpetual Eurobonds, RBC report- ed on June 28, citing unnamed sources close to the bank.
The issue was reportedly already prepared by one of Russia’s top 10 banks, and the only remaining question is the favourability of current market conditions, according to the sources of the business portal.
It is possible that the issue will not be placed with new investors, but will convert previous issues of subordinated bonds into per- petual notes. In May, Bank Vostochny increased its first-tier capital by RUB7bn through a similar conversion of $125mn worth of bonds, RBC reminds.
Societe Generale sold its minority equity stake of 5.3% in Georgia’s TBC Bank to a group of institutional investors for €52.3mn on June 28, the Georgian lender announced in a press release.
The French bank became a minority stakeholder in Georgia’s larg- est bank after the latter acquired Bank Republic, formerly owned by Societe Generale, in 2016. Societe Generale’s move follows that of the European Bank for Reconstruction and Development (EBRD), which sold a third of its shares in TBC Bank earlier in June.
The news comes after an eventful year for TBC Bank which saw
it acquire a premium listing on the London Stock Exchange (LSE) last August, buy the fourth largest bank in Georgia - Bank Repub- lic - and overtake the previous incumbent as the country’s largest lender, post double-digit growth in assets, profitability and lending and secure almost $200mn in financing from several international financial institutions (IFIs).
Raiffeisen Bank International (RBI), the second largest bank op- erating across Central and Eastern Europe by assets, has issued €650mn of perpetual additional Tier 1 capital (AT1).
ATI instruments are hybrid securities, also known as contingent convertible bonds (CoCos), which facilitate the bail-in of creditors during financial distress. They speedily convert into equity and can be easily written down when a bank’s capital falls below a supervi- sor-determined level. Coupon payments can also be skipped.
RBI issues €650mn of AT1 hybrid securities