Uzbek Industrial and Construction Bank to increase authorized capital worth $152 mln

Business Materials 19 June 2014 11:20 (UTC +04:00)

Tashkent, Uzbekistan, June 19

By Demir Azizov- Trend:

Uzbek Industrial and Construction Bank (Uzpromstroybank), the third largest bank in terms of the main financial indices in the banking system of the country, will increase the authorized capital by $152.2 million in 2014 - 2016, the bank's management told Trend with reference to Uzbek President Islam Karimov's decree.

"The bank's authorized capital worth $152.2 million is planned to be gradually increased in 2014-2016 in accordance with the decree on "Additional measures on increasing Uzpromstroybank's authorized capital" adopted in late May, according to the statement.

The authorized capital is being increased to expand the involvement of the bank in the implementation of strategic investment projects aimed at modernization, technical and technological re-equipment in priority areas.

Authorized capital is planned to be increased through an additional issue of shares in the amount of $122.2 million, according to the decree.

The Uzbek Reconstruction and Development Fund will buy shares worth $ 100 million, Uzbekneftegaz, Uzbekenergo, Uzkimesanoat enterprises and organizations and other investors - to the amount of $ 22.2 million.

Moreover, Uzpromstroybank will allocate some profit worth $ 30 million to increase the authorized capital in 2014-2016.

The bank representative said that under the decision of the Annual General Meeting of Shareholders, the bank will direct some 96.9 percent (45.5 billion soums) of the net profit, which totaled 46.972 billion soums as of 2013, to capitalization. These funds will be used to increase the par value of each share by 11.5 percent (from the current 2,917 soums to 3,252 soums).

Currently, Uzpromstroybank's authorized capital is equal to 333.641 billion soums. It includes over 114.378 securities with par value of 2,917 soums each, as well as over 112. 378 million ordinary shares and two million preference shares.

The shares of the Uzpromstroybank are owned by over 35,000 shareholders, including some 31,500 individuals and 3,600 legal entities. The largest shareholders of the bank are the Ministry of Finance (32 percent) and Uzbekistan's Fund for Reconstruction and Development (24 percent).

Uzpromstroybank was founded in 1922 and was reregistered in 1991. The bank is aimed at lending to the enterprises of the strategic industries. The bank has 45 branches, 176 savings banks, 65 mini-banks located in all regions of the country.

The bank's assets increased by 33.7 percent and reached 6.83 trillion soums in 2013.

The official exchange rate on June 18 is 2308.39 UZS/USD.

Edited by CN