VTB, the second largest financial institution in Russia, has announced that subscribers have bought the entirety of its 102.5 billion rouble or US$3.3 billion share offering. The bids had come from the sovereign wealth funds in Azerbaijan, Norway and Qatar.
The bank's orders had come from Norges Bank Investment Management, which is the world's biggest sovereign fund and Qatar Holding LLC. Also participating in the sale is the State Oil Fund of Azerbaijan.
The shares were sold to increase regulatory capital that have been used up in the bank's purchases of OAO Bank of Moscow and OAO TransCreditBank as well as share buy back of its minority investors. The share sale would lift its Tier 1 Capital ratio up to 11.9% from just 10.3% at the end of March, according to VTB.
In a statement, VTB Chairman Andrey Kostin, "We are delighted to announce the capital increase and are pleased with the transaction structure. Binding commitments to subscribe from major global investors have allowed us to secure our capital-raising targets."
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