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Russia's Vneshtorgbank to increase authorized capital by $350 million

MOSCOW, October 24 (RIA Novosti) - An extraordinary shareholders' meeting of the Russian Bank of Foreign Trade, Vneshtorgbank (VTB), adopted a decision to increase the authorized capital by 10 billion rubles ($350 million) by an additional placement of 10 million ordinary registered shares, the bank said in a press release Monday.

The shares will have a nominal value of 1,000 rubles ($35), and a placement cost of 3,760 rubles ($132) per share, the bank said. Additional shares will be offered through a private subscription only among current shareholders.

Vneshtorgbank intends to channel the proceeds of the additional share issue into the acquisition of the Central Bank's stakes in the Russian banks operating abroad, including in Donau Bank, East-West United Bank, BCEN-Eurobank, Moscow Narodny Bank and Ost-West Handelsbank.

The proposed acquisition has been approved by the Russian government and is in line with resolutions made by the National Banking Council to buy out the Central Bank's stakes in Russian banks operating abroad and consolidate them within the VTB Group, with total assets to exceed $25 billion.

Vneshtorgbank Group's enhanced presence in Western Europe is aimed at effectively attracting foreign investment in Russia's economy, along with promoting Russian investment abroad. It will also facilitate the support of foreign trade operations of Russian companies and encourage trade development programs with Western Europe, the bank said.

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