Bank of Russia, the Russian apex bank, has unveiled plans to invest approximately RUB56.9bn ($1bn) to recapitalise the troubled lender B&N Bank.
The funds will be invested to acquire the B&N Bank’s follow-on offering.
A follow-on offering is an issuance of stock subsequent to the company’s initial public offering (IPO).
In a statement, Bank of Russia said: “Following the Bank of Russia’s purchase of the bank’s follow-on offering and once the Bank’s credit claims to JSC Rost Bank have been settled, the bank will become compliant with its individual required reserve ratios and capital adequacy buffers.”
B&N Bank is slated to be combined with PJSC Bank Otkritie Financial prior to 1 April 2019.
B&N BANK ranks among the top 10 largest Russian banking groups by assets. The lender operates in more than 170 cities and 64 regions.
Additionally, it has a multichannel distribution network with more than 400 offices, approximately 15,000 ATMs and over 24,000 POS-terminals.