Nomos Bank Moves to Substitute Dollar Borrowings with Rouble Funding
OREANDA-NEWS. October 03, 2011. Nomos Bank (LSE, MICEX, RTS: NMOS), the seventh largest banking group in Russia by total assets and the second largest private universal banking group in Russia has signed an agreement with existing strategic shareholder Russia Finance Corporation (representing the interests of the Czech investor PPF Group) for the provision of a subordinated loan of 6 billion roubles, maturing in 2021, reported the press-centre of Nomos Bank.
Nomos Bank has submitted a formal request to the Bank of Russia seeking the inclusion of the subordinated loan amount in the calculation of the Bank’s own capital.
Earlier this month, Nomos Bank announced its decision to execute a call option in relation to the \\$125 million Eurobond the bank originally issued in 2006.
Commenting on the transactions, Nomos Bank’s Chief Financial Officer, Vladimir Rykunov, said:
"Given the high levels of market volatility we concluded it was sensible to substitute this existing short-term dollar instrument with longer-term rouble financing".
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