VAB Bank gets capital increase approved, Bakhmatyuk raises his stake

VAB Bank (VABANK) has completed the registration of its capital increase by 29.8% (UAH 700 mln), the bank stated on its website on September 18. As a result of capital increase, the bank’s main shareholder, Oleg Bakhmatyuk’s Quickcom Limited, increased its stake in VAB to 86.78% from 82.84%, according to the statement. VAB Bank shareholders approved the capital increase at an AGM on June 26.

Alexander Paraschiy: Bakhmatyuk’s updated stake in the bank implies he bought 99.7% of the new shares. This supports our belief that Bakhmatyuk is committed to developing the bank. Given the incentive he has to further improve his reputation in the international investment community (as he is reportedly trying to attract equity financing for his flagship asset, Ukrlandfarming), his increased exposure to VAB Bank raises our surety that the bank’s 2014 Eurobond will be repaid smoothly. Therefore, we confirm the VABANK bond – which currently yields an attractive 36% to maturity – as our top pick among C-rated papers.