MOSCOW, May 30 (Reuters) - Russian bank JUGRA is expected to receive a $500 million capital boost after its key shareholder converts its subordinated deposits into the bank’s capital, the mid-sized lender said.
Radamant Financial, a company which owns a 52.4 percent stake in JUGRA, will convert its deposits to prop up the bank, JUGRA said.
JUGRA President Alexey Nefedov said in an emailed comment to Reuters the conversion of $500 million worth of subordinated deposits will bring the bank’s capital adequacy ratio to 13.2 percent.
Plans call for more deposits to be converted into capital in the future, Nefedov said. (Reporting by Kira Zavyalova; writing by Katya Golubkova; editing by Andrey Ostroukh and Jason Neely)