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Wednesday, April 8, 2020

DIA board OKs Otkritie Bank's state-aid bid

The Deposit Insurance Agency (DIA) Board of Directors has approved a state-aid bid submitted by Otkritie Bank, the bank said on Thursday. 

Through the bid, the bank aims to raise capital by approximately $983 million with a bond issue.

Bank representatives said the bank's capital is stable, but that this addition would add a cushion in case of economic conditions deteriorate.

“We are comfortable about our capital,” Sergey Kovtun, chief financial officer at Otkritie Bank, said. “The state aid proceeds will make an extra capital reserve. This way, we will have more business-development opportunities and thus will be at an advantage in case of any changes, whether negative or positive, in the economy."

In late March, Otkritie Bank finalized the acquisition of 99.5 percent of Petrocommerce Group after shareholders of the bank approved the purchase in January. As a result of this, 18.5 million Otkritie shares were converted to Petrocommerce shares.

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