Promsvyazbank, one of Russia's largest non-state banks, has strengthened its balance sheet with a $400 million bond issue this week, an alternative to a share sale it cancelled after baulking at the valuation proposed by investors.
Chief Financial Officer Alexandra Volchenko said on Thursday she expected the bank's capital adequacy ratio - a key measure of a bank's ability to withstand shocks - to exceed 11 percent after the bond issue, based on a local definition of the ratio.
Promsvyazbank, Russia's No 10 lender by assets and controlled by brothers Alexey and Dmitry Ananyev, placed a seven-year subordinated Eurobond issue worth $400 million with a yield of 10.20 percent on Tuesday.