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HOUSE_OVERSIGHT_026150

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31 December 2016 Tier 1 146,079 Additional Capital-Sub Debt 72,515 Deductions -12,167 Total Regulatory Capital 206,427 CAD Ratio 21.37% Implied RWA 965,965 Regulatory Capital excluding Additional 133,912 CAD Ratio Adjusted 13.86% Due to the large interest margins and the high commissions, the capital to be created from profits is growing faster than the reduction of the capital contributed by the subordinated debt. OK 2K 2 2 2 2 2 2s fs 2s ie ais 2s 2s 2c 2c 2k is 2c 2 24k of 2k 2 2k 2k 2 2 2 2 2 2 2 ok 2k 2 2 ok ok 2 ois ok ok 2 2k 2s ois 2 is 2s 2s is 2 is afk is 2 2k 2k ic 2c 2 2k 2k 2K 2k Although Raiffeisen has already undergone a sales process twice, the last being 3 years ago, without success, I still consider the amount of its equity at EUR 350 million a very large amount to invest for gaining 0.8% more market share than that of Ukrsib. This information is as much I could gather but I will meet with EBRD for other reasons and will try to extract more information mostly on the intentions of BNP in dealing with their Ukrainian presence. From what I know EBRD’s 40% is considered exceptionally high as equity participation percentage comparing to their usual 10-15% and most probably they would be willing to listen to exit scenarios, possibly remaining as shareholders at a lower percentage. I think it is too early to discuss potential price but having EBRD inside already I would assume that 1x less due diligence adjustments should be the maximum, 17 HOUSE_OVERSIGHT_026150

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