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Alfa-Bank Ukraine’s management has decided to change the brand name, Interfax reported citing former Bulgarian Finance Minister Simeon Djankov.

Djankov, who was authorised to vote on the bank’s majority stake by the National Bank of Ukraine in mid-April, told the reporters that shortly after Russia invaded Ukraine, the board agreed to drop the Alfa-Bank brand.   

Djankov said “As soon as the registries reopen and there is an opportunity to implement this decision from a legal standpoint, a part of my function will be to steer necessary decisions through the annual shareholders’ meeting. I currently represent the majority of votes at this meeting.

“The Ukrainian bank… was always and remains independent of the Russian, Belarusian, Luxembourg bank, etc. […] The same name is indeed a hurdle. That is why the Ukrainian team promptly made a decision to change it.”

Alfa-Bank Ukraine is also looking to raise $1bn to meet its additional capitalisation needs. 

Djankov said that the Ukrainian lender hopes to receive authorisation from the US Treasury, the Bank of England and other regulators for the fundraising. 

Alfa-Bank Ukraine plans to raise the additional capital via the $1bn subordinated debt from the funds of several stakeholders who are subject to sanctions.

Of the $1bn, $500m will be used to bolster Alfa-Bank Ukraine’s capital, the remainder will be used to finance the economic recovery of Ukraine. 

Based on NBU’s data, as of 1 March 2022, Alfa-Bank Ukraine stood in the fifth position based on assets out of 69 banks that operate in the country.