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EBRD to double equity in Estonian Investment Bank
The Estonian Investment Bank (EstIB) is to double its capital with help from an ECU 1.5 million equity investment by the European Bank for Reconstruction and Development (EBRD), signed on 26 October 1994. The EBRD's agreement to increase its equity investment comes as EstIB also gains three new shareholders.
Ron Freeman, First Vice President of the EBRD, said: "EstIB's performance over the last two years, under its energetic management team and with the help of the Nordic Investment Bank's resident adviser, has allowed it to attract new investors. We are pleased to have them join us".
EstIB, established in June 1992 to provide medium and long-term funds for Estonia's private sector, will increase its capital from ECU 4.5 million to ECU 9 million. The EBRD, as one of EstIB's founding shareholders, will maintain its 33 per cent shareholding in EstIB; the Central Bank of Estonia (Eesti Pank), the other founding shareholder, will reduce its majority shareholding from 66 per cent to 33 per cent.
Other shareholders subscribing within the context of the capital increase are Finnish Fund for Industrial Cooperation Ltd. (Finnfund), Swedfund International AB (Swedfund), and Deutsche Investitions und Entwicklungsgesellschaft m b H (DEG), which will each have 11 per cent shareholdings.
The EBRD's initial investment of ECU 1.5 million was financed from the Baltic Investment Special Fund, while the ECU 1.5 million subscribed under the capital increase will be financed from the EBRD's own resources.
The Baltic Investment Special Fund was established in April 1992 between the EBRD and the Nordic countries in order to promote private sector development through support for small and medium-sized enterprises The EBRD, together with the Nordic Investment Bank, is an implementing agency under the Baltic Investment Programme and has at its disposal two special funds: the Baltic Investment Special Fund and the Baltic Technical Assistance Special Fund.
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