November 16, 2017 / 9:17 AM / a year ago

Russia's FG Budushchee approves new share issue

MOSCOW, Nov 16 (Reuters) - The board of Russian Financial Group Budushchee, a holding structure for a number of non-state pension funds including the Budushchee fund, has approved an additional share issue worth 49.2 million shares, it said on Thursday.

The nominal value of each share is set at 1,000 roubles ($16.68). Budushchee is yet to announce the share price for the additional share issue but it will be not less than the nominal value, it said in a statement. The share issue will be held under an open subscription.

“The Board of Directors of the Group approved the resolution adopted by the shareholders in May 2017 regarding the additional share issue for business development of the Group. Specifically, it can be used for introduction of NPF Socialnoe Razvitie into the Group,” the Group said in a statement.

Budushchee, one of Russia’s largest private pension funds, posted a loss of 2.6 billion roubles in the first nine months of this year due to exposure to Otkritie.

Nikolai Sidorov, chief executive of pension fund Budushchee, said this month the fund’s financial results will remain under pressure at least until the end of 2017 if the central bank sticks to the plan of writing off Otkritie shareholders’ holdings.

FG Budushchee, controlled by the family of businessman Boris Mints, has 5.2 million clients and over 335 billion roubles under management. ($1 = 59.9348 roubles) (Reporting by Katya Golubkova; Editing by Christian Lowe)

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