The Rotenberg brothers' bank places "eternal" bonds

Why the bank would need such papers and who could buy them is not clear. Previously, such papers were placed only by VTB, Gazprombank and Alfa-Bank.
"SMP Bank" brothers Arkady and Boris Rotenberg is preparing to place perpetual subordinated bonds for 15 billion rubles - on Tuesday, the Central Bank has registered three issues of bonds for 2 billion to 3 billion and 10 billion rubles. SMEs planning to place bonds by public subscription, they can be redeemed at the issuer's discretion. Landmark Bank did not disclose the profitability.

This is one of the ways to raise funds in the capital, after consultation with the Central Bank funds will be used in the basic and additional capital, said representative of the "SMP Bank". Funds are needed for financing the bank "general corporate purposes", he said, not to "certain financial transactions."

Until now, perpetual bonds produced only very large banks. VTB posted a perpetual Eurobonds for $ 1 billion under 9.5% per annum in the summer of 2012, by including them in the calculation of Tier I capital. Then, the state bank dorazmeschal "eternal" bonds for $ 1.25 billion with a yield of 9.42% per annum. Second after perpetual Eurobonds VTB, Gazprombank placed $ 1 billion 7.875% rate. This year, the "eternal" eurobond placed Alfa-Bank for $ 400 million c yield of 8% per annum.

The last two years are spent ruble loans Agricultural Bank (Rosselkhozbank). In August, the state-owned bank posted a perpetual subordinated bonds for 10 billion rubles (the rate of the top 20 semi-annual coupons - 14.5%), and in October, completely placed the paper for another 5 billion rubles. In the "long-term development program of the Agricultural Bank for 2014-2020." I said that the possibility of further such placements are severely limited by the market and the high cost. RAB admitted that hopes for recapitalization by the state.

Why SMEs needed to resort to expensive tools to replenish its own funds, it is not obvious. "Judging by the standards, margin of capital a bank has, and no information on the situation in the bank (Fitch does not provide ratings SMP) is difficult to say why he places the" perpetual "bonds, as well as to assume someone would have to buy these securities," - Fitch analyst Alexander Danilov said. RAB revealed that his "eternal" bonds bought mainly managers, insurance companies and investment banks.

"With the money from the bank all right - in November it increased the share capital by 2.4 billion rubles. at the request of the state program for the recapitalization of banks through the OFZ. The infusion will increase the adequacy ratio N1.1 core capital to 8.8% as of November 1 to about 10%, and this is a good stock, which allows dosozdavat and reserves and to increase lending, "- says the director of the bank ratings RAEX Yuriy Belikov. Large placements bank is not planning, aggressive growth of the loan portfolio is not - is not clear why the bank needed an extra capital buffer, he says, noting that in the summer of this year, the SMP has been tested CB dosozdav reserves by about 1% of the loan portfolio excluding interbank transactions, and some regulatory stress in the bank is not and never will. The smallest margin in the NSR according to the norm of capital adequacy N1.2 main - November 1, it was 8.84% at the regulatory minimum of 6%, says Belikov, but it is acceptable buffer.