Bank VTB : Results of VTB Extraordinary General Shareholders Meeting

1 September 2014

VTB Bank has announced the results of its Extraordinary General Shareholders Meeting (EGM), which was held via absentee ballot on 29 August 2014.

Shareholders approved a new version of the bank's charter and authorised the bank to sign the new charter, and for Andrey Kostin, VTB President and Chairman of the Management Board, to send a motion to approve the charter with the Central Bank of Russia.

Shareholders also approved an amended version of the Regulation on Preparing, Convening and Holding VTB Bank Annual General Meetings.

Shareholders also approved a decision to increase the bank's charter capital through the issuance of registered preference shares and their sale on behalf of the largest VTB beneficiary, the Russian Federation.

The shares will be issued in accordance with Federal Law No 275-FZ, which was adopted in July 2014 and provides the opportunity to convert subordinated loans issued to banks into Tier 1 instruments in line with the 2009 measures for supporting the Russian financial system. In effect, one financial instrument will replace another without the bank attracting additional funds.

The stock will be issued to the total amount of approximately 214 billion roubles and will be offered at a par value of one kopeck. The issue will be included in the bank's common equity calculated in accordance with Basel III standards.

Under Russian law, there will be no fixed dividend on these securities. The size of dividends is to be approved at the Annual General Meeting (AGM). Moreover, the new issue of preference shares will not be included in determining a quorum at the bank's AGM and will not change the total number of votes from holders of VTB's common shares.

The conversion of VTB Group's subordinated loans into preference shares is expected to take place this autumn.

A report on the results of voting at the VTB Annual General Meeting will be published in Rossiyskaya Gazeta and on the bank's website www.vtb.ru by the deadline set forth in accordance with relevant legislation.