  We present the estimate of the branching ratio for the rare decay $\bar
B^0\to D^*\gamma$. We use QCD factorization approach in order to compute the
amplitude of the process. The calculation is carried out with the leading order
accuracy. % Our consideration is based on the % factorization for the amplitude
of the process which % has been derived with the leading order accuracy. The
appearing non-perturbative matrix elements have been estimated using the
large$-N_c$ limit and QCD sum rule approach. We obtained that $\mathcal{B}(\bar
B^0\to D^*\gamma)\simeq 1.52\times 10^{-7}$. Such value of the branching
fraction is too small in order to be measured at present experiments.
