September 29 (SeeNews) - Bulgarian-based Alfa Finance Holding said on Monday it has teamed up with Austria's HYPO Investmentbank to launch a bank in Bulgaria and added it will also welcome the Austrian partner as a shareholder in its Macedonian bank.
"The partners are to provide the establishment and the fast development of a new type of bank in Bulgaria, focused on specific business lines," the two companies said in a joint statement.
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"The strategic objective of the partnership established between the Bulgarian holding and the Austrian financial institution is to jointly provide high-quality financial services in Bulgaria, Macedonia and other countries in Southeastern Europe," the two parties said.
The bank will be based in Bulgaria and will finance public sector, infrastructure and real estate projects, providing M&A services and corporate banking, the statement added.
Alfa Finance Holding has unsuccessfully applied for a banking licence in Bulgaria on its own.
HYPO Investmentbank will acquire a minority stake in Financia Group, part of Alfa Finance Holding, through a capital increase after which the Austrian bank and the Bulgarian holding company will apply for a banking licence. The majority stake of the future Bulgarian bank will be held by HYPO Investmentbank.
The same structure shall be applied to the Macedonian Capital Bank, majority owned by Alfa Finance Holding. The share capital of the Macedonian bank will be increased as well, thus aiming to add new resources for the development of innovative financial services, the statement said.
"The transactions are to be concluded upon receipt of all regulatory approvals required," the two companies said.
Alfa Finance Holding provides financial services in Bulgaria and Macedonia. It is also active in the real estate management and transport sectors and in the mining industry. Through majority-owned mineral extracting and processing company Kaolin, the group is active in Serbia, Albania, Romania, Turkey and Ukraine. It has some 3,000 employees and operates assets worth over 500 million euro ($717.6 million).
HYPO Investmentbank, wholly-owned by the Province of Lower Austria, is part of the HYPO Investmentbank Group, which comprises also the retail bank HYPO Landesbank, leasing group HYPO-Leasing, construction consulting company HYPO-Bauplan and the asset management company HYPO Capital Management.
($ = 0.6968 euro)