OREANDA-NEWS  On 11 December was announced, that BANK URALSIB (URALSIB or Bank) (RTS: USBN) announced a RUR 6bln subordinated deposit.

URALSIB has secured 6 bln rubles 10-year subordinated deposit from Russian investors. The subordinated deposit will be accounted for when assessing the Bank’s total equity which amounted to 44.5 bln rubles as of June 30, 2008 (RAS). The capital provision of the Bank has been registered by the CBR. As a result, the Bank’s total equity will grow by 13%.

URALSIB also plans other measures to increase Tier I & II capital. The Bank views a possibility of securing a 6 bln rubles long-term subordinated loan from the Bank for Development and Foreign Economic Affairs (VEB) in accordance with current legislation . The Supervisory Board of the Bank will consider applying to VEB at the next meeting.

In addition, the Bank views an additional share issue through closed subscription to the existing shareholders in the approximate volume of 5.5-6 bln rubles. The issue will be proposed for approval by the Bank’s EGM on December 15th, 2008 held by absentee voting. Should that be decided, the additional share issue is to be completed in IIQ2009.

Provision of capital due to subordinated loans and additional share issue is expected to increase the Bank’s total equity by 35-40% which will ensure further development of the business.