Bank opening

Taking into account the part of the net profit of the Asian-Pacific Bank (ATB), which will be transferred to the Central Bank, the total amount of the transaction for the sale of this credit institution will be 15 billion rubles. About this in interview with Izvestia told Deputy Chairman of the Central Bank, Chairman of the Supervisory Board of the Management Company of the Fund for the Consolidation of the Banking Sector (MC FCBS) Mikhail Alekseev… For the first time, he announced when the bank “Trust”, in which the “bad” assets of the rehabilitated credit institutions were accumulated, would be terminated, as well as whether the FKBS MC would continue to exist after the sale or transfer of all assets.

Interest in “Discovery”

On October 11, the Central Bank began accepting proposals from interested investors for the purchase of Otkritie Bank. Up to this point, interested parties could apply for due diligence of this asset. Are there already applicants for the acquisition of Otkritie? It is clear whether the bank will be sold to a strategic investor or through IPO?

We consider the Otkritie Group an attractive asset; investors have an interest in the bank and the banking group’s businesses… We are not yet disclosing information on the course of negotiations, prices and other terms of potential deals.

It is necessary to look at the results of the first stage of the procedure, this will allow us to more definitely plan the timing and preferred form of sale. The Bank of Russia will disclose more detailed information later, when it receives messages of interest in the purchase from investors and makes appropriate decisions.

Photo: Izvestia / Alexander Kazakov

Recently, the media reported that Gazprombank and the Region-Rossium group have shown interest in buying Otkritie. Is it true?

– I do not know where this information came from, and I will not comment on the rumors.

Earlier it was reported that there is also an interest on the part of some investors to acquire separately belonging to the banking group of the same name non-state pension fund and the insurance company Rosgosstrakh. How realistic does this option look considering the upcoming sale?

– Various options are being considered. There are several interested parties for the purchase of an insurance business… Interaction with them is carried out by the management of Otkritie.

Bye the decision on how much it makes sense to sell the insurance business separately has not been made… It will be made in the same time frame as the general decision to withdraw from the capital of the banking group, that is, not earlier than the end of October.

The fate of those who are being healed and those who are healed

What is the fate of Trust, which has become a bank of toxic assets of rehabilitated credit institutions? It was said that he would surrender the license. When will this happen? And how will the possible sale of Otkrytie affect the work of Trust?

Termination of Bank Trust is expected in 2024… Until that time, the bank will work out the bulk of the portfolio of problem and non-core assets. For some assets, the period of operation may go beyond 2024.

The sale of Otkritie will not affect the work of Trust, since they interact on market conditions, as with any other counterparties.

In connection with the sale of ATB and the prospect of selling Otkrytie, the fate of the FKBS Management Company itself is interesting. Minbank is expected to be merged with Promsvyazbank. That is, the remediation mission will be fully completed. What will the FKBS Management Company do afterwards? Are there any prospects for new readjustments?

trust bank

Photo: TASS / Vedomosti / Andrey Gordeev

– It is difficult to talk about the prospects in such matters. We certainly do not expect a repetition of major reorganizations, as it was in the first years after the emergence of a new financial recovery mechanism.

After the recent amendments to the legislation of the Criminal Code, the FKBS can also take part in the reorganization of insurance companies and non-state pension funds, however, the Bank of Russia’s approach is always very balanced: we plan to resort to the rehabilitation mechanism only in especially difficult and significant cases.

A billion more

In September, the Central Bank finally sold 100% of the Asia-Pacific Bank for 14 billion rubles to a company from Kazakhstan – Pioneer Capital Invest LLP. How does the Central Bank view the outcome of the transaction? And why did the bid of a non-resident win, and not Promsvyazbank or Sovcombank, which also took part in the auction?

– The trades were carried out in the form of a closed first price auction. This means that all four participants invited by the Bank of Russia had the same chance of winning. Three participants reached the auction directly. The winner was the one who offered the highest price, since that was the main condition of the bidding.

Of course, we positively assess the results and believe that the trading was successful. Preparations for them went according to a new procedure for all participants, introduced by bankruptcy legislation in 2019.

Taking into account the part of the bank’s net profit that will be transferred to the Bank of Russia by the buyer, we can confidently speak of a successful sale.

Initially, four bidders showed interest in the purchase, and three took part in the auction. Where did the fourth disappear, why didn’t he take part?

– At the end of July, we invited four applicants to participate in the auction, who had previously sent messages to the Bank of Russia about their interest in purchasing ATB shares, but one of them did not participate in the end. We do not disclose the name of this applicant, as well as the reasons why he refused to participate in the auction. We do not know them, but I will assume that the applicant was not ready to buy 100% of the shares at the cut-off price (11.63 billion rubles) in one payment, or his plans changed. This is normal for business.

CB bank

Photo: IZVESTIYA / Konstantin Kokoshkin

The central bank noted that the buyer will transfer to the Central Bank a part of the net profit of ATB for the nine months of 2021. What is this part, how much will the Central Bank receive in addition to 14 billion rubles?

– The exact value can be estimated based on the results of reporting for nine months. Nevertheless, according to our forecasts, the Bank of Russia will receive an additional 1 billion rubles. Thus, the total size of the transaction will exceed 15 billion rubles.

We acted within the framework of the established market practice, and the possibility of paying part of the profit earned by the bank this year was reflected in the structure of the transaction. This approach is actually an alternative to the distribution of part of the current year’s profit in the form of dividends, which the Central Bank decided to refuse from paying.

What is the current state of affairs with the promissory notes of a third-party and incomprehensible company FTK, which were sold through ATB offices under the guise of deposits? Have the funds been compensated to the buyers of the promissory notes – about 4 billion rubles? And what are the further actions in relation to promissory notes, taking into account the deal?

– Before the start of the ATB reorganization in April 2018, the bank, as an agent, sold to citizens the promissory notes of the FTK company associated with the projects of the former owner of the bank. In May 2018, the FTC stopped paying bills, and citizens had to initiate lawsuits in order to recover their investment. A total of 3.99 billion rubles worth of securities were sold.

The court practice was different: some of the decisions were made in favor of individuals, some – in favor of the bank. Before the sale of the bank, the investor of the Central Bank had to develop a mechanism that would minimize the investor’s risks on obligations related to such court decisions, and the costs of paying the bill holders of the FTC, to compensate the bank’s expenses for such payments.

Deputy Chairman of the Central Bank Mikhail Alekseev

Deputy Chairman of the Central Bank Mikhail Alekseev

Photo: Izvestia / Dmitry Korotaev

That’s why it was decided to create a closed-end mutual investment fund (Izvestia), a combined “Special” under the management of the FKBS MC. The bank transferred funds to bill holders on the basis of court decisions. In turn, the MC FKBS, as the trustee of the closed-end investment fund, redeemed the bank’s claims to the FTC on promissory notes, thereby compensating for the costs incurred by the bank… In the future, the redeemed rights of claim under the promissory notes are presented to the FTK company. AND the sale of ATB to the new owner will not change the procedure for resolving the situation with bills… I also note that the FTC is currently in bankruptcy proceedings.

Help “Izvestia”

Under the management of the FCBS MC is the Banking Sector Consolidation Fund, which was created by the Central Bank in 2017 for the financial rehabilitation of insolvent banks. The management company is under the 100% control of the Bank of Russia. On his behalf, she participates in the prevention of bank bankruptcies. The management company, on the basis of a license, is entitled to engage in trust management of mutual investment funds, dealer activities and securities management activities. A fund may consist of a group of funds that are created by decision of the Board of Directors of the Bank of Russia for the financial rehabilitation of individual banks. The Bank of Russia buys shares of funds, due to which the funds of the Consolidation Fund are formed.

PJSC Bank Financial Corporation Otkritie is the largest financial reorganization case. Additional capitalization amounted to 456.2 billion rubles, and distressed assets were transferred to Trust Bank.

The decision to reorganize the Asia-Pacific Bank was made in April 2018. It took 9 billion rubles to rehabilitate the organization.

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