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Rabobank and EBRD bring new capital to BGZ
Rabobank International and the EBRD will inject new capital into Bank
Gospodarki Zywnosciowej S.A. (BGZ), the 10th largest Polish bank and main
provider of banking services to the Polish agribusiness sector and to rural
areas. BGZ is one of two remaining large majority state-owned commercial banks
in Poland.
Rabobank and the EBRD, with representation on the Supervisory Board of BGZ,
will work closely with the management on the development of the business
strategy and restructuring of BGZ operations. After a capital increase the
EBRD’s equity investment will represent 15 per cent of the share capital of
BGZ, whereas Rabobank will hold 13.7 per cent. Simultaneously Rabobank has
made an offer to minority shareholders. The remaining shares in BGZ will stay
in the hands of the Polish State Treasury.
The investment by Rabobank and the EBRD will support the transformation of BGZ
into a modern, and efficient universal bank focusing on agribusiness and rural
finance. It will also pave the way for an eventual IPO, which will further
strengthen private ownership of BGZ. At the same time, the investment will
release needed funds to the regional and cooperative banks which presently
hold an important minority stake in BGZ.
The recapitalisation of BGZ will have an important impact on the transition of
the country’s agricultural and rural communities given the bank’s strong role
in this sector, said Kurt Geiger, EBRD Director for Financial Institutions.
BGZ occupies a market niche in which there is room for growth, and with the
support of Rabobank, with its long-standing commitment to agribusiness and
rural SME finance, we expect it to realise its growth potential, he added.
Wouter Kolff, Vice-Chairman of Rabobank International, said: “We welcome the
BGZ deal as a first ‘country banking’-oriented transaction of our group in
Central Europe. More is to follow.”
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