EIBANK TO RAISE ITS CAPITAL TO BGN56MN
EIBank is getting ready for a new raise of its shareholders' equity, this time by BGN21MN. According to the official announcement of the Bulgarian Stock Exchange, the bank managers intend that the capital be raised from BGN35MN to BGN56MN through the issuing of 3.5 million rights to purchase new shares worth BGN21MN. The offering will start 15 days after the subscription terms are published by the State Gazette. It will last two weeks.Currently, EIBank's shareholders' equity amounts to BGN35MN and is distributed in 3.5 million shares of BGN10 single face value. Each of the current shareholders will be invited to subscribe for a share of the rights in proportion to his existing holding. It has been calculated that six new shares will be available in return to ten subscribed rights.The issue will be considered successful if during the 14-day term after the rights trading starts orders for purchase of at least 500,000 shares totally worth BGN5MN have been submitted.The raise of the shareholders' equity is part of the strategy voted by the bank owners. On their general meeting held on June 24, 2004 they decided that the bank's Managing Board raise its capital to BGN70MN in the next five years. Part of the money raised will be used for investment banking. That is easy to explain considering EIBank's ambitious program to develop Pamporovo AD.This will be the bank's second raise of capital for 2004. In April EIBank ended the offering of shares worth BGN15MN which raised its capital from BGN20MN to BGN35MN.