The Central Bank of Russia approved June 29 the inclusion of the subordinated loan into the Russian Agricultural Bank's sources of additional capital.
"The subordinated loan has made it possible to raise the bank's equity to ensure further active growth in the credit portfolio of Russian Agricultural Bank, which is providing large-scale credit support to agricultural commodity producers under the national priority project to develop the country's agribusiness," the bank said in a statement.
The loan has a maturity of 10 years and stipulates an early redemption option in five years.
Russian Agricultural Bank, which was established in 2000 to service Russia's agricultural sector, is on a list of the country's top 30 banks published by the Central Bank.
The value of the bank's assets, calculated to Russian Accounting Standards (RAS), stood at 256 billion rubles (about $9.9 billion), and its equity was 32.6 billion rubles (about $1.3 billion) as of April 1.
