Majority owner ready to contribute up to UAH 3 bln to VAB Bank equity

The shareholders of VAB Bank (VABANK) found the resources to contribute UAH 2.5-3.0 bln into its equity, the Interfax-Ukrayina news agency reported, referring to an Oct. 8 press release that confirmed the financial backing of Oleg Bakhmatyuk, the bank’s main shareholder (controlling 90%). Bakhmatyuk added that shareholders have approached the central bank (NBU) to invite it to contribute to the bank’s equity. He stressed that VAB Bank is the first on the market to have offered such cooperation with the NBU, suggesting that such deal could be a model for other financial institutions.

Alexander Paraschiy: Bakhmatyuk’s statements shed some light on the action plan mentioned by VAB Bank’s CEO a day before. The size of his intended investment, which would nearly double the bank’s equity and regulatory capital, looks encouraging for VABANK bondholders. At the same time, as we understand from the recent statements, the key precondition for Bakhmatyuk’s equity increase would be cooperation with the NBU. Thus far, the central bank has yet to react and we are not sure it will take VAB’s offer. However, today we are more optimistic on a possible deal, providing that VAB is the first to offer such cooperation, as Bakhmatyuk claimed.