The company behind Russian online bank Tinkoff plans to raise $300m (£237m) on London markets in a bid to fund growth.
Tinkoff’s loans portfolio grew 21 per cent in the first quarter, chief executive Oliver Hughes said. He promised the trend would continue in the second quarter.
Most of the growth comes from personal loans, point of sale loans, car and home equity loans. These operations will be boosted by the new funds. They made up nearly a third of Tinkoff’s loan book at the end of the first quarter.
“We have been weighing the various alternatives to ensure we have an adequate capital position to support growth,” Hughes said.
He added $300m raise “would ensure that we have the necessary capital to seize the current profitable growth opportunity.”
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Morgan Stanley, Renaissance Capital, and UBS’s investment arm will run the bookbuild.
Net profits rose 25 per cent in the first quarter to 7.2bn roubles (£87m) as over 1m customers joined.