Russia's Renaissance Credit raises $100 mln to support lending growth
MOSCOW Dec 25 (Reuters) - Renaissance Credit, a mid-sized Russian bank focused on consumer lending, has raised $100 million via a subordinated Eurobond issue maturing in 5-1/2 years, the bank said on Tuesday.
The bank, which issued the bonds at a yield of 13.5 percent, plans to use proceeds to support its capital adequacy, a financial cushion to absorb possible losses.
Russia in the midst of a retail lending boom, with banks targeting consumers amid weak credit demand from corporate borrowers. Rapid growth requires banks to increase their capital ratios to meet a possible spike in unperforming loans.
Worried that retail lending growth running at a rate of over 30 percent may conceal bad loans, the central bank plans to demand tougher provisions to guard against default in the lowest-risk category of retail loans.
Last month, billionaire Mikhail Prokhorov's investment company Onexim agreed to buy the half of Renaissance Capital it did not already own, and take over Renaissance Credit from its founder, New Zealander Stephen Jennings. (Reporting by Katya Golubkova; Editing by Daniel Magnowski)