The increase was carried out by issuing 417,379,818 new shares, at a nominal value of RON1/share, by incorporating the reserves obtained from 2014 net profit, of RON406.82 million, and the reserves generated by bond-to-share conversion premiums, of RON10.55 million, the bank said in a report sent to the Bucharest Stock Exchange.
Over the past years, the bank has also opted for capitalizing a part of the profit registered in the previous year.
“The funds obtained from the share capital increase will be used to support the bank’s current activity,” according to the report.
Following the capital increase, each shareholder registered on June 15 receives, for free, 16 shares for every 100 shares owned.
On the Bucharest Stock Exchange Friday, Banca Transilvania shares were flat at RON2.36/share, bringing its market capitalization to RON7.14 billion.
The Bank for Reconstruction and Development is the largest shareholder of Banca Transilvania, with a 14.33% stake. The bank’s Board Chairman Horia Ciorcila and International Finance Corporation, a division of the World Bank, are also among the lender’s large shareholders.