Raiffeisen Bank is restructuring some debt to strengthen capital

28.07.2015

Raiffeisen Bank International is restructuring a part of the debt, to increase the capital adequacy ratio by 4 basis points, within modernization, which aims to raise this standard to a total of 12 % by the end of 2017, the bank said on Tuesday.

In the first quarter of 2015, capital adequacy ratio of the bank was 9.9 %, and currency fluctuations will increase it by at least 22 basis points in the second quarter and by 32 basis points this year.

"RBI has started the securitization of the portfolio which consists of Austrian and German mortgage loans and certain corporate loans with a final volume of 705 million euro ($ 780 million), - is mentioned in the bank statement. - This will lead to a reduction in risky assets of RBI with approximately 340 million euro, thus strengthening Core Tier by 4 basis points. "

RBI added that intends through securitization to improve the coefficient with at least 20 basis points per year.

Moreover, during the modernization, which was first announced in February, there will be sold some of the Austrian bank companies in Poland and Slovenia and there will be a reduced presence in Russia.

Last week, the RBI, the second largest bank in emerging Europe, said that the sale of its Polish units may be delayed due to difficulties associated with mortgages denominated in Swiss francs.

Polish business of RBI, Raiffeisen Polbank is the eighth largest bank in Poland in terms of assets with a book value of 6 billion zlotys ($ 1.62 billion).

Executive Director of the bank, Carl Sevelda, also said that the business in Ukraine, where RBI has lost 82 million euro in the first quarter, feels "surprisingly good", and added that the bank sold the branch in the Crimea and closed them in territory controlled by pro-Russian separatists.

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