Sberbank - Annual Report 2010 - 21 Subordinated Debt

Home Financial Report Financial Statements Notes 21 Subordinated Debt

# 21 Subordinated Debt

In millions of Russian Roubles | 2010 | 2009
--- | --- | ---
Subordinated debt received from the Bank of Russia | 303,299 | 504,346
Subordinated debt received on international financial markets | - | 14,504
Other subordinated debts | 214 | 211
Total subordinated debt | 303,513 | 519,061

In February 2005 the Group received a subordinated loan. This transaction was structured by UBS Luxembourg S.A. as an issue of an aggregate principal amount of USD 1 000 million Loan Participation Notes at contractual interest rate of 6.2% p.a. and maturity in February 2015, which were issued for the sole purpose of financing a ten-year subordinated loan to the Group. As at 31 December 2009 this subordinated debt was accounted for at amortised cost of RR 14 504 million and the effective interest rate on the loan was 6.4% p.a. In February 2010 the Group repaid subordinated loan in full.

In December 2008 the Group received a subordinated loan of RR 500 000 million from the Bank of Russia with a contractual fixed interest rate of 8.0% p.a. The transaction was structured in three tranches. In May 2010 the Group paid back RR 200 000 million of the loan. The remaining part of the loan matures in December 2019. On 30 July 2010 under the additional agreement with the Bank of Russia the interest rate was changed to 6.5% p.a. As at 31 December 2010 the loan was accounted for at amortised cost of RR 303 299 million; the effective interest rate on the loan was 6.5% p.a.

In the event of the Bank's liquidation the holders of these debts would be subordinated to all other creditors.

The estimated fair value of subordinated debt is disclosed in Note 34. Currency and maturity analyses of subordinated debt are disclosed in Note 31. The information on related party balances is disclosed in Note 35.

## History

- 20 Other Liabilities
- 19 Other Borrowed Funds
- 18 Debt Securities in Issue
- 17 Due to Individuals and Corporate Customers
- 16 Due to Other Banks

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