off-the-wire

Russia's VTB shareholders approve $1.1 bln share issue

Kitco Media
By Reuters
Published:
Updated:
Reuters
April 25 (Reuters) - VTB shareholders overwhelmingly approved an additional share issue of 93 billion roubles ($1.14 billion), Russia's No. 2 lender said on Tuesday, the second stage of a capital injection that seeks to ease the bank's financial woes. CEO Andrei Kostin has said the second additional issue was entirely commercial and would resolve some of the bank's capital problems. VTB slumped to a sanctions-induced $7.7 billion loss last year, but expects to bounce back with record profits in 2023.


Over 99% of votes were cast in favour of the share issue, with turnout of almost 77%, the bank said. VTB has said an undisclosed anchor investor will take part in the issue, to be conducted on the open market.


In March, VTB completed a private placement of additional shares, raising 149 billion roubles from the state, paid for in two non-cash assets including shares in Russian National Commercial Bank (RNKB). RNKB is one of the largest lenders in Crimea, the Black Sea peninsula Moscow annexed from Kyiv in 2014. Ukraine has demanded Russia hand back Crimea. Another part of the first share issue involved swapping a 30-year subordinated loan worth 100 billion roubles with the government for VTB shares. ($1 = 81.4700 roubles) (Reporting by Alexander Marrow Editing by Mark Potter)

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