21. Subordinated Debt

In mln of Russian Roubles 2011 2010
Subordinated debt received from the Bank of Russia 303,294 303,299
Other subordinated debts 224 214
Total subordinated debt 303,518 303,513

In December 2008 the Group received a subordinated loan of RR 500 000 mln 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 mln 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 2011 the loan was accounted for at amortised cost of RR 303 294 mln (2010: RR 303 299 mln); the effective interest rate on the loan was 6.5% p.a. (2010: 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.


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