Russian Bank Raised Millions in Ireland Just Before Collapse

With the management and shareholders of one of Russia’s biggest regional lenders deep in unsuccessful talks with the central bank about how to save it from collapse last November, an obscure company in Dublin sold $60 million of bonds on its behalf.

The amount wasn’t nearly enough to cover the estimated 97 billion ruble ($1.6 billion) hole in Tatfondbank PJSC’s balance sheet, and a month later the Russian regulator began the process of revoking its license. The bonds’ prospectus, meant to be a detailed look at the risks involved, made no mention of the shortfall or the central bank’s concerns, which had been raised since May. The notes are now almost worthless and the lender’s chief executive officer has been arrested on fraud charges related to the collapse.