VTB Bank in Russia has secured firm commitments from three sovereign wealth fund investors for its Secondary Public Offering (SPO) worth RUB102.5 billion (US$3.3 billion).
According to lender, on April 26, VTB Bank’s Supervisory Board approved a decision to increase the Bank’s equity capital by the issuance of 2.5 trillion new ordinary shares.
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The new shares will be offered at a price of 0.041 rubles per share or about 9 percent under the market value of the bank’s stock.
The offering is intended to help VTB Bank meet required capital adequacy levels and "strengthen VTB Bank’s shareholder base by introducing substantial new strategic investors and reinforcing links with existing major institutional shareholders.
After the new share offering, the stake held by the Russian government, which will not participate in VTB’s SPO, will fall from the current 75.5% to 60.93%, if investors buy up the entire amount of the new share offering.
Placed via an open subscription on Moscow Exchange, the bank’s existing shareholders will have the preemptive right to acquire new shares proportional to the number of shares held by them as of 26 April 2013.
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By GlobalDataVTB Bank has received firm and binding commitments from a group of investors comprising existing and new shareholders, including three prominent sovereign wealth funds: Norges Bank Investment Management; Qatar Holding LLC; and the State Oil Fund of Azerbaijan, SOFAZ, to subscribe for the entire amount of the offering.
