The European Bank for Reconstruction and Development (EBRD) is building up 30 percent of shares in Raiffeisen Bank Aval (RBA, Kyiv), the EBRD and RBA said in a joint press release.
“Under the agreement signed today in Kyiv, EBRD is acquiring 30 percent equity in RBA,” reads the report.
According to the document, the EBRD and Raiffeisen Bank International (RBI) will participate in the increase of Tier 1 capital of RBA by Hr 3.15 billion (122 million €).
The issue of increasing the capital will be discussed at a general meeting of shareholders in RBA scheduled for Dec. 3, 2015.
The share of RBI in the share capital of the subsidiary bank will be reduced from 96.2% to around 67%. The exact figure will depend on what minority shareholders invest in the capital (there are around 109,000 minority shareholders in the bank).
As reported, the EBRD intends to purchase up to 27.64 billion common registered shares of Raiffeisen Bank Aval within an additional issue, which will not exceed a 35 percent stake in the charter capital.
The nominal value of one share is Hr 0.10.
At the end of May 2015, Raiffeisen Bank International owned a 96.5 percent stake in the Ukrainian bank.
Raiffeisen Bank Aval was founded in 1992. It has about 670 branches across the country, serving nearly 3 million customers.
RBA ranked sixth among 123 banks operating in the country on Oct. 1, 2015 by total assets (Hr 52.639 billion), according to the National Bank of Ukraine.
