EBRD capital increase becomes effective

By Anthony Williams
@ebrdtony

A 50 percent increase in the EBRD’s capital base to €30 billion has become effective following subscription to the transaction by over 50 percent of the Bank’s shareholders.

The EBRD’s Board of Governors agreed to the capital increase at the Bank’s Annual Meeting in Zagreb in May 2010, paving the way for a rise in EBRD investments over the following five years to support the region as it emerges from the sharpest recession since the fall of Communism.

The approval of the capital increase was decided in the context of the Bank’s strategy up to 2015 that calls for annual investments of €9 billion in 2011 and 2012 and of €8.5 billion in each of the following three years.

The Bank’s capital now rises to €30 billion from €20 billion, via a temporary increase in callable capital of €9 billion and a transfer from reserves to paid-in capital of €1 billion. Previously €5 billion of capital was paid-in and €15 billion was callable.

Subscription to the capital increase is an ongoing process and other subscriptions are expected to be received shortly.