National Welfare Fund Transfers 100 Billion Rubles to VTB Bank
Russian Prime Minister Dmitry Medvedev has authorized the transfer of 100 billion rubles (US$ 1.8 billion) from the National Welfare Fund (NWF) to boost the capital of VTB Bank. The first aid tranche NWF order was signed on December 27th. The funds have been placed into a subordinated deposit to fund Russian-backed infrastructure projects. VTB Bank is Russia’s second biggest lender by assets.
In a statement by VTB Bank, “As a result, the bank’s capital adequacy ratio under Russian Accounting Standards will exceed 12%.”
By the end of the first quarter of 2015, VTB Bank is expected to receive a second tranche in the amount of 150 billion rubles (US$ 2.6 billion).
On December 5th, Two Capitals Highway, a VTB Capital subsidiary, and Vnesheconombank (VEB) penned a cooperation agreement to finance, build and operate two sections of the M-11 Moscow-St Petersburg toll motorway. The transportation project is being financed by VTB Bank. VTB Capital is acting as financial consultant.
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