Vozrozhdenie Bank has held an extraordinary General Meeting of Shareholders

1 September 2015

Vozrozhdenie Bank announces the extraordinary General Meeting of Shareholders held in the form of absentee voting on Friday, August 28, 2015.

The meeting was held to approve particular terms of the agreement between the bank and the Deposit Insurance Agency on monitoring activity of the bank within the framework of state recapitalisation programme.

With a view of strengthening the capital position, it is suggested to enter into an agreement with the Agency on acquisition of V.Bank’s subordinated debt via transfer of sovereign bonds (OFZ) to the bank.

“Participation in the state recapitalisation programme on reasonable terms is of the bank’s keen interest and we are happy to enlist our shareholders’ support in this issue. An improvement of capital ratios would give fresh impetus to the expansion of our core businesses — mortgages and SMEs — as well as contribute to the development of particular sectors,” noted Igor Antonov, the Chairman of the Management Board of Vozrozhdenie Bank.

Upon the decision made by the General Meeting of Shareholders, the bank shall respect the following terms:

  • The amount of remuneration to the members of the Board of Directors shall not exceed the level reached as of January 1, 2015 during the three years following the date when the bank has received the sovereign bonds (OFZ) from the Deposit Insurance Agency or until the bank and its shareholders have discharged their obligations specified in the agreement.
  • During the period of maturity of the bank’s subordinated debt the bank’s equity (capital) shall be enhanced by not less than 50% of such subordinated debt via, among other options, channeling not less than 75% of the bank’s profit for an increase in the equity (capital) to deliver the growth in the tier 1 capital set in the agreement.
Vozrozhdenie Bank Board of Directors has held a regular meeting
Vozrozhdenie Bank Board of Directors has held a meeting