MOSCOW, Nov 22 (Reuters) - Tinkoff Credit Systems (TCS), a mid-sized Russian bank, is considering a Eurobond issue to help strengthen its capital, its Vice President Sergey Pirogov told Reuters.
Pirogov said the bank planned to hold meetings with potential investors on Monday and Tuesday next week and could then go ahead with the bond sale if market conditions were favourable.
Pirogov said, depending on market conditions, TCS could raise around $100 million from the issue, which would be a subordinated bond which has certain characteristics that allow it to count towards a bank’s capital.
TCS, a rapidly-growing retail bank, had a capital adequacy ratio of 13.46 percent as of Nov 1, above a 10 percent requirement set by Russia’s central bank.
Banks have to maintain a minimum capital adequacy ratio to act as a buffer against possible shocks.
Russian borrowers raised almost $47 billion from Eurobond sales in 2012, almost double what they raised last year, benefiting from investor appetite for emerging market investments. (Reporting by Oksana Kobzeva; Writing by Katya Golubkova. Editing by Jane Merriman)