Photo: Nikita Popov/RBC
Problem Bank “Peresvet” has moved to practical implementation of the plan of salvation, including at the expense of creditors. The Bank issues subordinated bonds to convert the claims of creditors of 125 billion rubles.
Creditors “Peresvet”, which is now in its fourth month under the interim administration, has taken another step towards resolution of the situation in the troubled Bank. As the message of the “Peresvet”, unveiled on Tuesday, January 31, the Bank’s shareholders approved a placement of subordinated bonds with a nominal volume of up to 125 billion rubles, as well as conversion attracted in 2016 OFZ from the Ministry of Finance under the state program of capitalization of banks to 100 million rubles per ordinary share.
If the conversion of OFZ in the event the question is rather technical: BFL originally housed in exchange for preferred shares of the Bank, their conversion to ordinary insignificant increases in the capital — the placement of subordinated bonds — the first practical step towards the Bank’s recapitalization at the expense of its creditors that in the international practice is a part of procedure of bail-in. According to yesterday disclosed a significant fact, just the Bank plans to issue 380 million shares at the price equal to the face value, — 329 RUB the circulation Period of the securities is 15 years and interest rate of 0.51% per annum.
“The issue of subordinated bonds, which will be converted existing customer deposits, at a rate significantly below the market can indicate the beginning of the implementation of bail-in (the conversion of Bank debt in its capital. — RBC),” — says senior Director of banking institutions Fitch Ratings Alexander Danilov. He explained that as a result of the conversion obligations of creditors in subordinated bonds in the financial statements according to IFRS the Bank will immediately reflect, in fact, future profits, which partially closes the hole, and in reporting on the company, capital contributions will be gradual, as it is the profit you will earn.
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Who will pay for the “Peresvet”
In Russian practice, a full bail-in does not exist. Troubled banks rescued at the expense of individual creditors, and if till then they were not subordinated debt holders (whose debt to the reorganization converted to stock automatically, but it is small), and, for example, placed the funds in Bank accounts or in the possession of his ordinary bonds, to convert their claims against the Bank subordinated bonds, requires their consent. According to sources RBC, close to the “closest distance”, despite officially launched the issue, the prospects for its full host in question. The interlocutors RBC indicate that with all creditors “Peresvet” a final agreement has yet to be found.
The fate of the “Peresvet” meanwhile, yesterday was also discussed at the meeting of creditors of the Bank, told RBC a source familiar with the discussions. According to him, at last became more or less comprehensible range of lenders who will participate in the Bank bailout. It will include creditors with the requirements of the “closest distance” in the amount of 500 million rubles thus converted into subordinated debt of the Bank will be 85-90% of their requirements. Else they will return, says the interlocutor of RBC.
Thus the key question remains whether the funds to rescue the Bank, the Central Bank and to what extent. According to sources, the decision will find after appears a certainty with the total volume of loans, are ready to convert, told RBC sources. “The Central Bank probably already has a rating, how much he is willing to give the maximum and if after the practical conversion of requirements of creditors of the Bank that will be enough, the fate of the Bank will once again be called into question,” says one of the interlocutors RBC.
Regardless of the outcome of the situation, revealing the scope of the issue of subordinated bonds to rescue the Bank. He can talk about the size of the current problems “overexposure”. Earlier estimates of a hole in the Bank’s balance sheet was at the level of 80-90 billion rubles. “Apparently, the decision on the amount of the issue would be taken with reserve, since the last valuation of the hole in the Bank’s capital was estimated at 90 billion rubles,” — said one of the creditors. But, he said, it is possible that as the review of the interim administration with the real volume of the hole, its size has increased.
Also the question remains about whether or not a leading contender for the role of chief turnaround “Peresvet”, which is considered under control “Rosneft” the all-Russian regional development Bank (RRDB), continue to assume these obligations. As reported, in late December, the largest creditors of the Bank “inter RAO UES”, “RusHydro”, the chamber of Commerce of the Russian Federation — have asked Prime Minister Dmitry Medvedev to support the proposal on reorganization of the “Peresvet”. A month after that Bank staff were included in the interim administration of the Bank.
CBA, ACB, and the Bank’s major shareholders — the Russian Orthodox Church, as well as the chamber of Commerce — did not respond to a request RBC.