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EBRD and IFC convert debt into 7.28% stakes at Banc Post
This press release was issued by Eurobank in Athens
The EBRD and IFC today each acquired a 7.28 per cent stake in Romania’s Banc
Post by converting debt into shares.
The transaction, combined with a $10 million capital increase also approved at
Banc Post’s annual general meeting of shareholders today, is intended to
strengthen Banc Post’s position as a leading Romanian financial services
provider.
Following the capital increase, which will be covered by the shareholders,
Banc Post’s capital will increase by $26 million.
EFG Eurobank Ergasias is the largest shareholder of Banc Post, and will
maintain its participation of over 50 per cent in the share capital. EFG
Eurobank has also signed a put and call arrangement with the EBRD and IFC with
respect to their share in Banc Post. EFG Eurobank also holds an option to
acquire shares currently owned by GE Capital that amount to 7.48 per cent.
Banc Post is the fifth-largest bank in Romania and the largest with Greek
ownership. It employs approximately 3,500 people. In 2004 the bank has shown
impressive growth, with both lending and deposit-taking increasing faster than
that of the Romanian banking market.
The Bank runs a network of 164 branches throughout Romania, covering all areas
of banking with emphasis on retail and large and medium enterprises following
operational systems and customer service standards similar to those of Greece.
It is worth noting that in 2004 Banc Post was awarded by ‘The Banker,’ member
of the Financial Times publishing group, as ‘Best Bank in Romania.’
The EBRD and IFC originally each extended $10 million subordinated,
convertible loans to Banc Post in 1998 as part of an effort to increase the
bank’s capital and prepare it for privatisation, which eventually occurred in
2002. Under today’s transaction, each is converting $8 million of the debt
into shares.
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