The capital increase operation will be carried out by issuing, without issuance premium, a maximum number of 197.3 million new nominative, ordinary and dematerialized shares, each having a nominal value of RON0.1/share, the lender said in a market report.
The capital increase will be conducted by converting, up to RON14.92 million, the subordinated loan granted to Patria Bank by EEAF Financial Services BV on December 18, 2018, and through additional cash contribution.
The share capital Increase is aimed at sustaining the lender’s development plans, by offering new shares to all shareholders of Patria Bank.
Shareholders are also expected to approve the use by transfer to the Retained Earnings of the General Reserve for credit risk in the amount of RON3.4 million and of the Reserve representing the fund for general banking risks in the amount of RON11.87 million to partially cover historical losses recorded in the balance on December 31, 2020, for the financial years 2017 and 2018. The amounts include losses from loans and from the balance sheet items that represent risk-bearing assets specific to the banking activity and which exceed the balance of reserves for banking risks amounting to RON15.3 million.
Patria Bank, held by investment fund Emerging Europe Accession Fund (EEAF), had a net profit of RON6.05 million, on individual level, in the first half of 2021, up 27% from the same period in 2020.
The lender’s total assets stand at RON3.48 billion, up 1% from the end of 2020 due to changing the balance sheet structure.
PBK shares have grown 6% since the beginning of 2021, amid deals worth RON2.9 million, stock market data show.
The group Emerging Europe Accession Fund Financial Services, which owns 83.2% of the share capital of Patria Bank, is held by the European Bank for Reconstruction and Development (BERD), the European Investment Fund (EIF) – part of the European Investment Bank (EIB) or the Black Sea Trade and Development Bank (BSTDB).