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. Last Updated: 07/27/2016

Potanin's Rosbank Completes Restructuring

Rosbank, the top-10 Russian bank owned by metals magnate Vladimir Potanin, said Wednesday that it had completed a major restructuring and would raise funds from shareholders, banks and the stock market to fund future growth.

Chairman Alexander Popov said Rosbank had fully consolidated the OVK banking group, bought in 2003 for $200 million, as well as three small units, boosting its gross assets to 205.8 billion rubles ($7.2 billion) as of July 1.

Rosbank, created with the assets Potanin salvaged when the 1998 financial crash drove predecessor Oneximbank into default, says it is now Russia's sixth-largest bank by net assets and claims the No. 3 spot in the booming consumer credit market.

Its own capital is 18.4 billion rubles ($640 million), and directors will vote on July 25 on a 7.5 billion ruble supplementary share issue to be taken up by its current owners.

"We expect the main contribution to come from our holding company, Interros," Popov told a news conference, referring to Potanin's investment vehicle, which controls Norilsk Nickel.

Rosbank plans to raise a $100 million, two-year syndicated loan at the end of the third quarter or the beginning of the fourth, Popov said.

Rosbank last tapped the syndicated-loan market in December, raising $50 million at LIBOR plus 2.75 percent from an 11-bank group led by Commerzbank, Standard Bank London and HSBC.

In June, it placed a $150 million, two-year eurobond with a 7.625 percent coupon. With rapid lending growth stretching many Russian banks' balance sheets, Rosbank is also considering an initial public offering in 2006 or 2007 to boost its capital adequacy.