Friday, July 20, 2018

Otkritie Financial's purchase of Petrocommerce to boost Nomos Bank's credit profile

Russia's Otkritie Financial Corp recently purchased Petrocommerce Bank in a deal that Moody's says could boost

One Russia's 30 largest lenders, in terms of assets, Petrocommerce is majority owned by IFD Kapital. As part of the transaction, Otkritie will issue new shares totaling 19.9 percent of its capital to be bought by IFD Kapital.

Moody's said the transaction "will have a positive impact on the credit profile of Nomos Bank," adding that the entry of IFD Kapital as a corporate shareholder will "further strengthen the structure of the ultimate owners of Nomos Bank."

Previously, IFD Kapital had announced its readiness to buy back, up to completion, the transaction performing loans and also provide the bank with a long-term subordinated loan in the amount of $300 million. Moody's also said the transaction will help recapitalize the bank and improve its credit profile, according to Moody's.