Cistran Finance Exploring the Spirit of Capitalism's New Frontier

Thursday, January 18, 2018

Otkritie Financial Corporation buys IFC stake in Otkritie Bank

Otkritie Financial Corporation has bought the International Financial Corporation's 14.3 percent stake in Otkritie Bank and assigned it to NOMOS-BANK in transactions priced at $120.2 million.

The corporation now indirectly owns almost 100 percent of Otkritie Bank, with a controlling stake held by NOMOS-BANK. This structure is in line with the strategy being implemented by Otkritie Financial Corporation to create an integrated banking group.

"We are grateful to the IFC for their cooperation which for many years was key to the successful implementation of Otkritie Bank's development strategy", Ruben Aganbegyan, the chairman of the board of directors of Otkritie Financial Corporation, said. "IFC invested in Otkritie Bank at the outset of its existence, when it was being set up as an integrated retail bank on the basis of the assets merged into the [Otkritie] Group as part of financial recovery measures, and their support at that point was tremendous. This withdrawal was mutually agreed with Otkritie Financial Corporation. Moreover, it was predetermined by the Corporation's intention to build up a consolidated banking group with minority shareholders involved only at the level of NOMOS-BANK. We hope, however, that Otkritie FC will continue to cooperate with IFC in other projects."

IFC bought a 15.7 percent in Otkritie Bank in March 2011 for $86.2 million. Later, after an additional issue of Otkritie Bank shares, IFC's stake has proportionally decreased to 14.3 percent.