Probusinessbank’s extraordinary general meeting resulted in the decision to approve of the subordinate loan the bank might take from East Capital Financials Fund AB. The loan would amount to 624.89 million RUR that the bank will have to pay back over a five-year period alongside with the 12% annual interest rate.

According to the terms of the transaction, the subordinate loan agreement can be converted in registered common stock at a price of 2,145 RUR per share, should the creditor want this. The creditor is allowed to apply for the conversion within three years of signing the loan agreement.

East Capital Financials Fund AB is actually one of Bank Severnaya Kazna’s shareholders. This bank’s majority shareholding was bought by Alfa Bank in December 2008, while Probusinessbank acquired Bank24.ru at about the same time.