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BSTDB shareholders decide to increase subscribed capital

Finance Materials 1 October 2021 16:03 (UTC +04:00)
BSTDB shareholders decide to increase subscribed capital

BAKU, Azerbaijan, Oct.1

By Leman Zeynalova – Trend:

Following the adoption of the Long-Term Strategy for the period of 2021-2030 earlier this year, the Board of Governors of the Black Sea Trade and Development Bank (BSTDB) at its extraordinary meeting today decided to increase the subscribed capital of BSTDB from the current EUR 2.29 billion to EUR 3.10 billion, Trend reports with reference to the Bank.

The new subscription follows the increase in the BSTDB authorized capital approved in 2007 and the first round of subscription decided in 2008 and completed in 2018. The subscription covers 70% of the available authorized but unsubscribed capital and leaves unsubscribed 10% of the total authorized BSTDB capital of EUR 3.45 billion, which will remain available, inter alia, for potential new shareholders.

The paid-in portion of the newly subscribed capital will be 30%, with 70% callable - in line with the Bank’s current capital structure. As a result of the new subscription, the Bank will receive an additional capital of EUR 244.96 million, thus raising the paid-in capital held by the Bank to EUR 931.51 million.

The subscribed capital increase will enable BSTDB to fulfil the strategic objectives set forth in the Long-Term Strategy for 2021-2030 to promote economic development and regional cooperation of Member States and strengthen the Bank’s response capacity in crisis situations while increasing its relevance to shareholders.

The subscription process will be finalized by the end of September 2022, and the BSTDB shareholders will make the subscribed capital payments in eight installments during the period of 2023-2030.

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