Uzbek bank to increase authorised capital by 1.9 times

Business Materials 6 August 2012 13:51

Uzbekistan, Tashkent, Aug. 6 / Trend D.Azizov /

The Uzbek Industrial and Construction Bank (Uzpromstroybank),which is the third largest bank in terms of major financial indicators in the banking system of the republic, carried out an additional issue of shares worth over 152 billion soums, planning to increase its authorised capital by 1.9 times - up to 318.5 billion soums, the bank said on Monday.

The additional issue was registered by the Centre for Coordination and Control over the Securities Market under the State Property Committee of Uzbekistan on August 2. According to the prospectus, the bank will place 54.578.1 million common shares, at 2,785 soums each.

The additional issue was made in accordance with the decision of President Islam Karimov "On additional measures to increase the capitalization of Uzpromstroybank (April 2012), providing for an increase in the authorised capital of the bank in 2012 - 2013 by more than two times - up to 300 billion soums through the issuance of additional shares worth 152 billion soums.

According to the decree, the Ministry of Finance shall redeem the total volume of additional issue of securities at 44.5 billion soums, the Fund for Reconstruction and Development of Uzbekistan (FRDU) - 33.1 billion soums, Uzbekneftegaz, Uzbekenergo, Uzhimprom and their structural units will redeem shares worth 28.3 billion soums, other investors will acquire the shares at 46.1 billion soums by public subscription.

As reported in early July, Uzpromstroybank increased authorised capital by 12.5 percent - up to 166.5 billion soums by increasing the nominal value of shares.

The credit facility placed additional issue of shares worth 166.543 billion soums - in total, 57.78 million common shares and two million of preferred shares, at 2,785 soums each.

The additional issue was undertaken by the decision of the annual meeting of stockholders to increase authorised capital by capitalization of profits. In total, 18.5 billion soums, including 12.3 billion soums from the net profit for 2011 (55 per cent of profits), and 6.2 billion sums from the profits of past years were directed to capitalization.

The shares were placed by private subscription among the shareholders according to the participation rights by converting shares of 2,475 soums on new denomination 2,785 soums.
Uzpromstroybank was established in 1922 and re-registered in 1991.

The main activity is to lend to enterprises operating in strategic sectors of industry. The bank has 45 branches, 176 savings banks, 65 mini-banks located in all regions of the republic, a representative office in Moscow.

Bank shares are owned by 35,062 shareholders, including 31,500 individuals and 3,562 legal entities. The largest shareholders are the Ministry of Finance of Uzbekistan and the Fund for Reconstruction and Development, whose combined shareholding is currently 51 per cent.

In 2011 assets of Uzpromstroybank grew by 79.4 per cent compared to 2010 - to 3.46 trillion soums. The credit portfolio grew by 63.6 per cent to 2.23 trillion soums and liabilities by 85.4 per cent to 3 24 trillion soums.

The official exchange rate is 1904.90 soums to $1 on Aug.6.