BSTDB shareholders decide to increase the subscribed capital by 710 million euros, the paid-up capital by 245 million euros
The Board of Governors of the Black Sea Trade and Development Bank (BSTDB, Thessaloniki) at an extraordinary meeting on Friday decided to increase the subscribed capital of the bank from 2.29 billion euros currently to 3 , 10 billion euros.
“Following the new subscription, the Bank will receive additional capital of 244.96 million euros, thus bringing the paid-up capital held by the Bank to 931.51 million euros,” BSTDB said on Friday.
The bank said the released portion of the newly subscribed capital will be 30%, of which 70% is callable, in line with the bank’s current capital structure.
The BSTDB also stated that the subscription covers 70% of the available capital authorized but not subscribed and leaves unsubscribed 10% of the total authorized capital of BSTDB of 3.45 billion euros, which will remain available, among other things, for new potential shareholders.
“The subscribed capital increase will enable BSTDB to achieve the strategic objectives set out in the Long-term Strategy for 2021-2030 in order to promote the economic development and regional cooperation of the Member States and to strengthen the bank’s response capacity in a crisis situation while increasing its relevance to shareholders, the bank said.
According to the bank, the subscription process will be finalized by the end of September 2022, and BSTDB shareholders will make the subscribed capital payments in eight installments over the period 2023-2030.
Additional capitalization of 245 million euros for Ukraine will result in the payment of approximately 5 million euros per year for eight years.
BSTDB is an international organization of 11 states of the Black Sea Economic Cooperation Organization. The shares of Turkey, Russia and Greece in the capital are 16.5% each, Romania – 14%, Ukraine and Bulgaria – 13.5% each, Azerbaijan – 5%, Albania – 2%, Armenia – 1%, Georgia and Moldova – each 0.5%. The Bank aims to support economic development and regional cooperation in the countries of the Black Sea region.
At the end of August of this year, the chairman of the bank Dmitry Pankin said that with the current capital of BSTDB, its project portfolio of 2.3 billion euros is also close to the cap, which is around 2, 6 billion euros.
According to him, additional capitalization increases the chances of raising the rating, which has long been at “A-” (S&P) level with a positive outlook.
“Such additional capitalization will show rating agencies that member countries are ready to help and support the bank,” Pankin said.