The deal has been approved at all corporate levels of the two parties involved, and the final transaction documents are to be signed in the coming days.
EBRD’s investment in the EIG will reach up to EUR30 million and will be carried out through a capital increase of the insurance group. Еurohold will also participate in the capital increase procedure with a further equity capital injection of up to EUR12 million.
Euroins Insurance Group will use the raised funds predominantly for the development and growth of the largest insurance entity within the group – Euroins Romania Asigurare Reasigurare SA, and additionally, to strengthen the holding’s market positions in Southeast Europe.
In early August 2021, Euroins Romania was it was summoning its shareholders on September 15, 2021 to vote on a new share capital increase, of over RON120 million, after two other consecutive capital increases carried out recently, which exceeded RON126 million (EUR25.5 million), and alongside an additional capital injection of RON40 million (EUR8.1 million) to be granted to Euroins Romania by the parent company, via subordinated debt. This would lead to a total contribution of EUR57.8 million of the main shareholder to the share capital of Euroins Romania in less than one year.
Also, the EBRD has co-financed Еurohold’s acquisition of CEZ Group’s business in Bulgaria.