Bulgaria's Elana Agrocredit kicks off capital increase

Elana Agrocredit will offer for subscription some 18.3 million new ordinary voting shares with a par value of 1 lev each at an issue price of 1.10 levs apiece, the company said in a bourse filing.

Current investors and those who purchase existing shares within five business days of publishing the capital increase notice will receive rights to subscribe for new shares, with each two rights corresponding to one new company share.

The capital increase will be considered successful if no fewer than 10 million new shares are subscribed and paid for. The company stands to make some 20.12 million levs in net proceeds if all shares are subscribed, Elana Agrocredit said earlier in a capital hike prospectus.

The raised funds will be used to finance the company's main activities, including signing contracts for leasing agricultural land and providing working capital credits.

Elana Trading will act as investment intermediary on the capital increase process.

Shares in Elana Agrocredit last traded on Friday when they closed at 1.10 levs on the Bulgarian Stock Exchange, bourse data show.

(1 euro = 1.95583 levs)