Investmentfunds under the management of Baring Vostok plan to bolster the capital ofRussian loss-making lender PJSCOrient Express Bank by 3 billion Russian rubles, Vedomosti reported May 10.
Aspart of the capital hike, the lender plans to issue 300 billion shares with apar value of 1 Russian kopeck apiece, to be acquired by Evison Holdings Ltd., acompany through which Baring Vostok funds control the bank.
BaringVostok has been looking for an investor to participate in Orient Express Bank'scapital hike sincesummer 2015, with potential investors including , J&T Group,AO Russian StandardBank owner Roustam Tariko and the shareholders of .
However,it became clear in April 2016 that current owners of the bank will not be ableto finalize negotiations with investors in a swift manner and will be forced tofinance the capital hike on their own, the news report said.
Thelender posted an IFRS net loss of over 10 billion Russian rubles for 2015, withoverdue loans constituting almost 30% of its loan portfolio. The bank, whichwill need a capital injection by the end of 2016, is also expected to generatea loss in 2016, Vedomosti noted.
As of May 10, US$1 wasequivalent to 66.28 Russian rubles.