OREANDA-NEWS. June 09, 2011. Bank Saint Petersburg announces a 14th Additional Issue of Common Registered Non-Documentary Shares. In accordance with the Bank’s Supervisory Board decision the issue will be placed under the following terms and conditions, reported the press-centre of Bank Saint Petersburg:

 Maximum number of shares to be issued – 24,000,000;

 Price of placement is set at RUB 146.66 per share;

Type of offering – open subscription;

Form of payment for the shares- Russian roubles.

The price of placement was set by the Bank’s Supervisory Board; it was calculated as a weighted average price on MICEX for the period from March 1, 2011 to May 31, 2011 (excluding five trading days with maximum trading volumes). The gross proceeds raised under the offering could reach RUB 3.5 billion should the issue be placed in full.

The owners of the Bank’s ordinary shares are entitled to exercise their pre-emptive rights. The closing date to determine the list of shareholders having the pre-emptive right is June 7, 2011. The procedure and effective placement date for the persons having pre-emptive rights will be announced after registration of share issue by the CBR.

The Bank’s management and a number of minority shareholders controlling in total about 75 percent of the voting shares have expressed their intent not to exercise their pre-emptive rights in favor of the European Bank for Construction and Development (EBRD).

On June 1, 2011, the Board of Directors of the EBRD approved participation in the Bank Saint Petersburg’s additional ordinary share issue in the amount of up to RUB 2.75 billion. If the EBRD participates in the subscription up to the indicated level, it will acquire approximately 6% of the Bank’s ordinary shares including the new share issue.

Upon the acquisition of the newly issued shares by the EBRD, the Bank intends to repay the USD 75 million subordinated loan attracted from the EBRD in 2009 (subject to the CBR approval). This would ease the loan service burden on the Bank in the amount of approximately USD 30 million in 2012-2014.

Alexander Savelyev, Chairman of Bank Saint Petersburg, commented: “Bank’s Management is happy with the EBRD’s decision to enter the Bank’s capital as a strategic shareholder. Our five-year-long cooperation has moved to a new level. This decision will contribute to the development of the modern banking technologies, adoption of the best European practices and general improvement of the corporate governance in the Bank”.

Bank Saint Petersburg cooperated with the EBRD since 2006, when the first loan agreement was signed for USD 30 million for purposes of funding loans to small and medium businesses. The relationship was extended in 2008, when Bank Saint Petersburg attracted a USD 100 million syndicated loan with the EBRD acting as a lead arranger. In 2009 the EBRD provided Bank Saint Petersburg with a USD 75 million subordinated loan with maturity in 2019 to strengthen its capital base. In November 2010, Bank Saint Petersburg entered into a loan agreement with the EBRD under which it attracted USD 65 million to fund the small and medium businesses of North-West region of Russia.