Russia's third-largest privately-owned bank, Promsvyazbank (PSB), is to float its shares in Moscow and list global depositary receipts in London.
The bank will raise funds through the flotation which will be used to strengthen its capital position, and to support its retail and small-to-medium-enterprises (SME) expansion strategy.
The share offer will include a sale of existing ordinary shares owned by Promsvyaz Capital. Following the offering, PSB will issue new ordinary shares through a closed subscription in which Promzvyaz Capital has agreed to participate. Furthermore, the European Bank for Reconstruction and Development, the current existing minority shareholder, is considering participation in the closed subscription by converting either partially or fully a 3.5bn rubles subordinated loan provided to PSB in 2011, with a view to maintain its proportionate ownership at 11.75%.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"Since its establishment in 1995, PSB has demonstrated a track record of value creation and has become one of Russia's largest and fastest-growing independent, privately-owned banks. The transaction will help PSB to further strengthen its capital position and to continue to build on the growth momentum created to date. The management team has a proven track record and a clear strategy that aims to leverage PSB's scale and the opportunities in the Russian banking sector to deliver greater value to its customers and its shareholders," claimed Artem Konstandian, President of PSB.
JH
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
-
What does Rachel Reeves’s plan for growth mean for UK investors?Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
