AK BARS Bank has received the approval of the Central Bank of Russia to treat the subordinated loan of $600 mio as supplementary capital

AK BARS Bank has received the approval of the Central Bank of Russia to treat the subordinated loan of $600 mio as supplementary capital.

On 13 July 2012, AK BARS Luxembourg S.A. issued U.S.$600,000,000 8 per cent. Loan Participation Notes due 2022 for the purposes of financing a subordinated loan to AK BARS Bank (the «Bank»). The Bank has now received the approval of the Central Bank of Russia to treat the subordinated loan as supplementary capital.

The Bank’s total capital increased to RUB 54.437 billion and its capital adequacy ratio increased to 16.08 per cent. (each according to Russian Accounting Standards), as of 14 July 2012 when the approval of the Central Bank of Russia was effective.

«The inclusion of the subordinated loan as supplementary capital of our bank provides important conditions for stable long-run development and strengthening of our capital base», said the Chairman of the Management Board of the Bank, Mr. Robert Minnegaliev.

This announcement is not an offer for sale of securities in the United States or any other jurisdiction. The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. Neither the Bank nor the Issuer intends to register any portion of the issue of securities in the United States or to conduct a public offering of the securities in the United States.

This communication does not constitute an offer of the Securities to the public in the United Kingdom. No prospectus has been or will be approved in the United Kingdom in respect of the Securities. This communication is being distributed to and is directed only at (i) persons who are outside the United Kingdom or (ii) persons who are investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the «Order») and (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as «Relevant Persons»). Any investment activity to which this communication relates will only be available to and will only be engaged with, Relevant Persons. Any person who is not a Relevant Person should not act or rely on this document or any of its contents.

Copies of this announcement are not being made and may not be distributed or sent into the United States, the United Kingdom, Canada, Australia or Japan.

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