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EBRD takes equity in Estonia’s oldest commercial bank
As part of its on-going strategy of supporting Estonia’s banking sector, the European Bank for Reconstruction and Development (EBRD) is subscribing to 2.4 million newly issued shares of AS Eesti Maapank (EMP), which represents approximately 19.4 per cent of EMP’s new share capital.
“The EBRD’s equity investment in EMP will help attract potential domestic and international investors to support the bank as well as assisting EMP in raising additional capital in the medium term,” said David Hexter, Deputy Vice President at the EBRD. “The EBRD is fulfilling its role of encouraging further capital contributions into the Estonian banking market by assisting the institutional development of a key economic sector.”
The DM 3 million (ECU 1.6 million) equity investment will allow EMP to expand its banking activities and increase lending to private sector enterprises in Estonia where it plays a leading role, especially outside Tallinn and in rural areas. With a stronger capital base, EMP will be able to better serve the growing needs of its clients for financing. Enhancement of competition in the local banking market will also be a longer-term consequence.
EMP is majority privately owned and privately controlled and is the sixth largest commercial bank in Estonia in terms of shareholders’ equity and asset size. It operates in both corporate and retail markets as well as in inter-bank transactions. EMP has established a good reputation among the small and medium-sized enterprises outside Tallinn, including agribusiness companies.
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