28.07.16. Rostec has raised its share in authorized capital of NOVIKOMBANK up to 100%
Rostec became the sole owner of NOVIKOMBANK.
In accordance with announced strategy and plans for increasing the capital, Rostec raised its share in the authorized capital of NOVIKOMBANK up to 100% and became sole and absolute owner of the credit organization.
All approvals of the Federal Antimonopoly Service of the Russian Federation and Bank of Russia were obtained. At present the Rostec’s share in the authorized capital of the Bank is 100%.
The Agreements to transfer the shares of NOVIKOMBANK to Rostec were concluded with all shareholders falling outside the State corporation (LLC “GRAVILAT”, LLC “MEGASPETSSTROY”, LLC “PULSAR” and LLC “SEVER-ATLANT”) on July 26, 2016. Prior to that, in April 2016 the Agreements signed with LLC “ADAMANT”, LLC “VEGA-PLAST” and LLC “LK-INVEST” were executed and as the result of that the Rostec’s share in the authorized capital of NOVIKOMBANK was raised to 74.23%.
“Under current market conditions it is important to understand that first and foremost being qualified and professional partner in the implementation of goals set for Russian industry, NOVIKOMBANK offers various financial serviced to Russian industrial enterprises, - the CEO of Rostec, Sergey Chemezov commented. – I am sure that the plan to increase the capital will enhance further improvement of credit ratings of organization and will allow the Bank to enter Top-10 biggest Russian banks in the future. Now exactly this aim is set forth for the Bank’s team and all conditions have been made for its achievement.”
The additional issue of shares of NOVIKOMBANK for the amount of RUB 1.59 bln was in January 2016. In April 2016 the money contributions totaling RUB 8 bln were made to increase the equity capital of the Bank. The investments into Bank’s capital in the form of fixed assets amounting to RUB 3 bln were made in July 2016. At present moment the additional issue of shares of the Bank equaling to RUB 13 bln is being finished. The next share issuance is planned for August-September of this year.
NOVIKOMBANK is the main clearing bank of Rostec’s enterprises. The key business focus of the Bank is set on financing of russian industrial enterprises including high-tech enterprises, aviation and car industry.
The Bank was assigned long-term credit rating in foreign and national currencies by Moody's at the level of B2.
Prosperous changes in NOVIKOMBANK’s business activities were recorded by rating agency RAEX (EXPERT RA) that in July 2016 confirmed the rating of creditworthiness of NOVIKOMBANK at the level of B++ (Moderate level of creditworthiness) with the positive outlook meaning high probability of the rating improvement in the mid-run.
The confirmation of positive outlook on the rating is connected with the start of implementation of plans of Rostec to increase the Tier 1 capital of NOVIKOMBANK before the end of 2016. The strong market positions in the segment of serving to industrial enterprises, appropriate quality of the security portfolio and good net interest income and fee revenue coverages of expenses on activity maintenance aid the rating.