Uzbek bank increases authorized capital by over 11 percent

Uzbekistan Materials 11 September 2014 15:43 (UTC +04:00)

Tashkent, Uzbekistan, Sept. 11
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, increased the authorized capital by 11.5 percent up to 371.958 billion soums, the bank's management told Trend Sept. 10.

The bank's management reported that in accordance with the decision of the annual general meeting of shareholders, Uzpromstroybank transferred 81.6 percent (38.316 billion soums) of the net profit for 2013 (46.972 billion soums) to the capitalization. These funds were directed to increase the par value of each share by 11.5 percent - from 2,917 soums to 3,252 soums.

In early September, Uzpromstroybank issued 114.378 million shares with par value of 3,252 soums each, including 112.378 million ordinary and two million preferred securities totaling approximately 371.958 billion soums.

The shares were placed on closed subscription among shareholders in accordance with the shares by converting the old shares with a nominal 2,917 soums for new ones.

It was earlier reported that Uzbek Industrial and Construction Bank (Uzpromstroybank) planned to gradually increase the authorized capital by $152.2 million in 2014 - 2016 in accordance with the decree on "Additional measures on increasing Uzpromstroybank's authorized capital" signed in late May 2014.

The 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 shares of the Uzpromstroybank are owned by over 35,000 shareholders, including some 31,500 physical entities 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, as well as a representative office in Moscow.

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

The official exchange rate is 2355.69 UZS/$1 Sept. 11.