CEO: Russia’s Jugra Bank to issue 6–7 bln rbl extra shares, hold IPO

MOSCOW, Sep 7 (PRIME) -- The strategy of Russia’s Jugra Bank envisages capital increase by 6–7 billion rubles, an initial public offering (IPO) and regional expansion, CEO Alexei Nefyodov told PRIME in an interview released on Wednesday.

“There will be an issuance of additional shares soon,” Nefyodov said. “Our plans include the start of trading and placement of about 10% of the shares of the bank, we want new investors in our capital. And we plan to tell you more IPO details at the end of September or at the beginning October.”

Jugra Bank earlier sent a bid to boost capital through a mechanism including state OFZ bonds but later abandoned the idea. “We withdrew from participation in the program at the very last moment. One of the reasons for the withdrawal was the restrictive measures imposed on the bank in case of participation in this program of capital increase,” he said.

According to Nefyodov, the bank perceived the condition of investment in target sectors and the loan portfolio growth restrictions envisaged by the OFZ mechanism as too a heavy burden.

Jugra Bank lost its place among the top 30 largest banks by assets to Nordea Bank in early July but according to Nefyodov, the bank plans to regain the position and enter top-20 by the end of 2017.

(64.8306 rubles – U.S. $1)

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