VAB Bank initiates a UAH 7 bln capital increase

Обзоры по компаниям и отраслям 16.10.2014 The shareholders of VAB Bank (VABANK) will convene an EGM on Nov. 17 to consider a 2.7x increase in its share capital via placement of new shares worth UAH 7.0 bln in total value, the bank reported on Oct. 15. A week before, the bank’s majority shareholder, Oleg Bakhmatyuk (holding a 90% stake), revealed his readiness to add UAH 2.5-3.0 bln to its equity, also calling upon the National Bank of Ukraine (NBU) to participate. Two days afterwards, an NBU official claimed that it will provide financial support to the bank’s liquidity, providing little details about the means of support. Alexander Paraschiy: Given Bakhmatyuk’s earlier statements, he probably expects that the NBU will contribute UAH 4.0-4.5 bln to VAB Bank’s equity, which looks rather ambitious. The scheduling of the EGM does not necessarily mean that the NBU has agreed to contribute, but it still sounds encouraging for the holders of VAB paper. At least, we expect Bakhmatyuk’s moves to save the bank will be rewarded by the central bank, which could decide to make it among the first in line for new refinancing of loans.