Alfa-Bank Russia Received Subordinated Loan from Vnesheconombank
21 Oct 2009

Alfa-Bank Russia received RUR 29.3 bln subordinated loan from Vnesheconombank (VEB). Of this amount, RUR 230 mln was granted with a required ratio of shareholder funding to state funding of 1:1,  and RUR 29.1 bln at a new ratio of 1:3.

Alfa-Bank Russia is the first private Russian bank to obtain state support on new terms. The loan matures in December 2020 and the interest rate is 9.5%  per annum. The received funds will increase Tier 2 capital of ABH Financial Limited.

Andrei Sokolov, First Deputy Chairman of the Alfa-Bank Russia's Executive Board, said "This support from the state is an acknowledgment of Alfa-Bank Russia's position as a leader in the Russian financial market, a position it has maintained even in times of economic instability. Alfa-Bank Russia's shareholders have also supported the bank through the recent financial turmoil, investing an additional US $690 mln in its equity capital over the last year. The funds received from VEB will be used to lend to the real sector".

Alfa-Bank Russia had previously received unsecured RUR 10.2 bln loan from VEB in January 2009 with a ratio of shareholder funding to state funding of 1:1.

Alfa-Bank Russia

Alfa-Banking Group includes Alfa-Bank Russia which is today one of the largest privately owned banks in Russia. It also includes Alfa-Bank Ukraine, one of the top-ten largest banks in Ukraine.  Alfa-Banking Group also comprises  banks in the Netherlands, in Belarus and in Kazakhstan as well as presence in Cyprus, the United States and the United Kingdom. The Group offers a wide range of products and operates in all sectors of the financial market, including corporate and retail lending, deposits, payment and account services, foreign exchange operations, cash handling services, custody services, investment banking, trade finance and other ancillary services to corporate and retail customers.
 
Alfa-Bank Russia, founded in 1990, has developed rapidly to become one of Russia's largest privately owned banks. It provides a full range of banking services — corporate banking, retail banking, investment banking, asset management and trade finance. In 2010, Alfa-Bank Russia had 364 branches over nine time zones in Russia, the Netherlands and the United Kingdom, also had presence in the United States and Cyprus.

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