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. Last Updated: 07/27/2016

EBRD to Take Avtobank Equity Stake

The European Bank for Reconstruction and Development is planning to take an 8 percent equity stake in Avtobank, one of Russia's top 20 banking institutions, for $20 million, the chairman of Avtobank's board said Tuesday.

The decision could be confirmed by EBRD as early as next month, Natalaya Rayevskaya, the head of Avtobank, told a news conference. EBRD is also planning to grant Avtobank a credit line of $30 million over seven years, she said.

As of July 1, Interfax ranked Avtobank as Russia's 15th-largest credit institution in terms of assets, which totaled 5.7 trillion rubles ($1 billion), with capital of 1 trillion rubles.

EBRD's resident representative in Moscow, Lou Naumovsky, confirmed that EBRD is negotiating with Avtobank but declined to comment on the outlines of a possible deal.

In September 1994, EBRD took a 14-percent stake in Tokobank, another leading Russian bank, with an investment of $35 million. (Reuters, MT)

Avtobank's largest single shareholder is insurer Ingosstrakh, which holds 13.5 percent of its shares.