TransKapitalBank has finalized a liability management transaction to amend the terms of U.S.$100,000,000 10.00 per cent. loan participation notes (ISIN: XS0311369978) issued by TRANSREGIONALCAPITAL D.A.C. and traded on the Euronext Dublin.
The main purpose of the transaction is to improve the composition of the Bank’s regulatory capital and lengthen its debt redemption profile. The proposed amendments to the loan were approved by a duly qualified majority of the investors at the meeting of noteholders held on 19 June 2020.
These amendments comply with the requirements for including the subordinated eurobond loan as a source of additional capital according to CBR Regulation No. 646-P dated 4 July 2018 "On the methodology for determining own funds (capital) of credit organizations ("Basel III").
The Central Bank of Russia approved the amendments made to the terms of the subordinated eurobond issue and the subordinated loan agreement dated 16th July 2007, which were approved by the bondholders via the consent solicitation exercise.
The capital of the Bank reached 24,2 billion rubles (39% increase), the adequacy ratios are Н1.0 – 15,74% (min 8%); Н1.1 – 8,98% (min 4.5%); Н1.2 – 12,74% (min 6%) as a result of the inclusion of this subordinated debt in the Bank’s additional capital sources.
Upon receipt of such approval from the Central Bank of Russia, TransKapitalBank is authorized to treat this subordinated debt as part of its own Tier 1 capital.