ABSOLUT BANK has raised the equity capital by 22% to R1.344 billion ($51.2 million/E39m), the bank’s press service has reported. The increase was effected by issuing 24 million new shares with a nominal value R10 each. Placement price was $2.5 apiece. Securities were placed through a closed subscription among current shareholders of the bank. As a result of the new share issue, the first level capital of the bank rose by $60m. According to ABSOLUT BANK board chairman Nikolai Sidorov, the bank will use the funds to maintain growth rates and raise lending along with expansion of sales networks in regions. Sidorov forecast that, within two years, the bank will have over 100 points in 20 most economically advanced regions of Russia.
Source: NOVECON, March 7, 2007
