July 26, 2011 / 6:10 AM / 8 years ago

Russia's VTB eyes 10 pct in Czech Home Credit-paper

MOSCOW, July 26 (Reuters) - VTB Capital, the investment banking arm of Russia’s No.2 lender VTB , is in talks to buy up to 10 percent of Czech banking group Home Credit B.V., Vedomosti daily wrote on Tuesday citing sources.

The purchase will also make the bank a shareholder of Home Credit and Finance bank, the Russian branch of Home Credit BV.

The purpose of the deal is to raise funds from the upcoming initial public offering (IPO) of Home Credit B.V., a part of PPF Group NV, Vedomosti said.

A banking source confirmed the report to Reuters, while VTB Capital declined to comment on the issue.

Czech banking group Home Credit B.V., which has operations in Europe and the former Soviet Union, is planning to raise around $1 billion in an IPO in September.

VTB is now in the process of acquiring a 75 percent stake in Russia’s No.5 lender, Bank of Moscow , which faces a record $14 billion state bailout. (Reporting by Oksana Kobzeva; Writing by Andrey Ostroukh)

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