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Russia's Gazprombank plans subordinated perpetual Eurobond

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MOSCOW, Oct 12 (Reuters) - Gazprombank, Russia's No. 3lender by assets, has mandated banks to hold meetings withinvestors as it eyes a possible subordinated perpetual Eurobondoffering, IFR and a banking source said on Friday.

Both said that Gazprombank, which is 35.5 percent owned bystate-controlled gas company Gazprom , had hired CreditSuisse, Goldman Sachs, HSBC and Gazprombank itself to meetinvestors in Singapore, Hong Kong, Switzerland and London,starting from Oct. 16.

A subordinated perpetual bond, which in Gazprombank's casewould also be callable and non-cumulative, would allow the bankto boost its capital, strengthening its ability to absorbpossible shocks.

In a first deal of its kind in Russia, No.2 lender VTB

raised $1 billion via a perpetual bond issue in Julythis year, and is considering topping up the deal this autumn.

Gazprombank's Tier 1 capital adequacy ratio stood at 11percent at the end of June, up from 9.6 percent at the end oflast year.

Russian banks, their balance sheets stretched by rapidlending growth this year, are using bond or equity issues alongwith retained profits to improve their capital positions.

Last year, Russian state development bank VEB acquired a10.2 percent stake in Gazprombank after buying the majority of arights issue for about $1.57 billion.

Russian issuers, including the sovereign, have raised morethan $38 billion via Eurobond deals so far this year, more thanin the whole of last year, with new deals boosted by positivecurrent risk sentiment.

A banking source told Reuters that Sberbank hadmandated HSBC, JP Morgan, UBS and itself for investor meetingsfrom Oct. 16. The source did not specify whether a deal mayfollow the meetings in London, Boston and New York.

(Reporting by Lidia Kelly and Katya Golubkova; Editing byDouglas Busvine and Susan Fenton)

((ekaterina.golubkova@thomsonreuters.com)(+7 495 775 1242))

Keywords: RUSSIA GAZPROMBANK/EUROBOND