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. Last Updated: 07/27/2016

Inkombank To Issue ADRs

Inkombank has received approval to issue American Depositary Receipts, or ADRs, on the U.S. over-the-counter market, the first Russian bank to gain such a right, a bank official said Thursday.

"We are hoping to make Inkombank even more attractive to Western investors," said Andrei Petouchov, head of securities at the bank, adding that it gained SEC approval Wednesday to issue level-1 ADRs together with the Bank of New York.

He said that the current ADR issue should not be confused with an announcement last February that the bank plans to sell up to 20 percent of its shares in order to raise $150 million in new capital.

"This issue is not intended to bring in fresh money," he said, adding that Russian holders of Inkombank stock will now be able to sell their stock on the U.S. market.

Petouchov said the date of the issue has not been fixed. "I am hoping we can do this in one month or two months," he said, adding that the bank still needs to determine the price of the depositary receipts and on which over-the-counter market they would be traded.

Other Russian companies that have received approval to issue ADRs are Mosenergo, LUKoil, Chernogorneft and Seversky Tube Works.