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EBRD invests in Latvia's third largest bank
As part of its strategy of strengthening the capital base of leading private
banks in Latvia, the European Bank for Reconstruction and Development (EBRD)
is acquiring approximately 23 per cent (US$6 million) of Rigas Komercbanka
(RKB), the third largest bank in the country. Under the terms of the
subscription agreement signed today, the EBRD will acquire 2,669,702
newly-issued common shares.
"EBRD achieves two of its priorities in Latvia with this investment in Rigas
Komercbanka. First, strengthening the capital base of one of Latvia's leading
private sector banks and, secondly, facilitating the flow of capital to the
corporate sector," said David Hexter, Deputy Vice-President of the EBRD.
"RKB's client base includes many of Latvia's leading corporations. The
management is innovative and service-oriented. With a stronger capital base,
the bank will be able to better serve the growing financing needs of its
clients and consequently will enhance competition in the Latvian banking
market."
With the participation of the EBRD, institutional development will be a top
priority for RKB. EBRD will appoint two representatives to the Supervisory
Council of RKB, with the additional objectives of further strengthening
corporate governance and building the long-term profitability of the bank.
Established in 1989 as one of the first commercial banks in Latvia, RKB is now
the third largest bank in the country in terms of assets. It has 728 employees
and 11 branches which are well positioned in the important business regions of
Latvia. Combined with a strengthened capital base, RKB is well placed to
become one of the leading banks in the Baltic States.
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