March 8 (SeeNews) - The Black Sea Trade and Development Bank (BSTDB) said on Wednesday that its board of governors decided to allocate to member states 578,016 new shares worth 664.7 million euro ($700.3 million) in the first step of a capital increase.
Under the decision, the member states that qualify without any regulatory concern will receive a number of shares corresponding to the share they each own in the capital of the bank immediately prior to the offer for subscription, BSTDB said in a press release.
Ten out of the bank's eleven member states participated, with the offer oversubscribed by two of them, the lender added without naming the countries.
The final decision on the allocation of shares, payment and transfer of voting rights will be made at the annual meeting of the bank's board of governors in July.
"This second capital increase is another significant milestone that will equip the bank to confront regional challenges and to continue providing the financial resources necessary to drive growth, create jobs, and improve the lives of the citizens in Black Sea region," Ιoannis Tsakiris, Greece's deputy minister for development and investments and chair of the bank's board of governors, said.
The total authorised capital of the bank amounts to 3.45 billion euro, according to the statement.
The Greece-headquartered bank was established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey and Ukraine.
In January, Bulgaria's parliament approved the country's contribution of 33.2 million euro to the bank's paid-in capital so as to retain its current stake of 13.5%.
BSTDB's three largest shareholders are Greece, Turkey and Russia, with stakes of 16.5% each, the lender's website shows. Romania holds 14%, while Ukraine owns as much as Bulgaria.
The development bank decided to increase its subscribed capital to 3.1 billion euro from 2.29 billion in October 2021.
BSTDB's board has also adopted the first phase of the bank's medium-term strategy and business plan for 2023-2024, paving the way for the bank to pursue a policy of consolidation and thus secure its financial strength and portfolio quality, BSTDB also said.
($ = 0.9491 euro)