Promsvyaz : ank’s RUB 15.7 bn capital increase

Promsvyaz Capital B.V., Promsvyazbank's majority shareholder, made a RUB 15.7 bn cash contribution to the bank's capital.

'Promsvyazbank's capital increase demonstrates our shareholders' continued support for the business and its development in line with the chosen strategy. Historically, PSB has taken advantage of economic downturns to achieve inorganic growth and drive business performance, and the capital increase will support the efficient integration of the newly acquired banking assets, Bank AVB and Pervobank, without reducing lending to the Russian businesses and projects that contribute to economic growth. Another important benefit is that the cash contribution will enable the bank to meet increased capital requirements to hold Russian Government Federal bonds (OFZ),' said Artem Konstandian, Chairman of Promsvyazbank's Management Board.

In May 2015, Promsvyazbank had already received a RUB 13.8 bn capital injection from its major shareholder. The funds were invested in regional business development and expansion of cooperation with major Russian corporations.