Alfa-Bank wants to return 63 bln rbl state support to DIA

MOSCOW, Feb 17 (PRIME) -- Russia’s Alfa-Bank does not need a 62.8 billion ruble state support provided in the form of a subordinate loan by the Deposit Insurance Agency (DIA) and has sent a request to the agency and to the central bank seeking an early redemption of the loan, a spokesperson of the bank told PRIME on Friday.

“Right now, Alfa-Bank is no longer in need of the subordinate loan to comply with regulatory ratios…That is why Alfa-Bank has sent a request to the DIA and the central bank asking them to study the possibility of an early redemption of the subordinate loan received under the state program for capital increase through OFZ federal bonds,” the person said.

“Currently, Alfa-Bank has significantly exceeded all regulatory ratios of the Bank of Russia. While the central bank’s regulatory ratio is 8.77%, the bank’s figure stands at 14.37%. Additional significant support to capital was provided by a placement of U.S. $700 million perpetual Eurobonds at the end of 2016 and conversion of a 35 billion ruble net profit for 2015 into the bank’s capital,” the spokesperson said.

The bank’s loans to priority sectors of the economy exceeded DIA’s demands twofold in 2016, the person said.

Alfa-Bank received five issues of OFZ federal bonds with a face value totaling 62.8 billion rubles at the end of 2015. Interest rates on subordinate loans of the bank amount to a corresponding coupon of the OFZ issues plus 1% annually.

(57.1507 rubles – U.S. $1)

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